Tata, Mahindra sales decelerates in South Africa

Auto giants like Mahindra and Tata Motors saw a decline in sales in South Africa in September. Although Mahindra XUV 500 was launched in South Africa lately, the overall car sales in September were dismal. It is evident that the market conditions and requirements in South Africa are quite similar to India and thus, Indian car makers have SA as the top most priority in the overseas market list. However, Indian car manufacturers saw their market share of the total South African new vehicle market drop below one per cent in September.

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New vehicle sales statistics for September, released on Tuesday, displayed combined sales from Tata and Mahindra as 541 units out of the lion’s figure-54,364 units sold in SA whereas in August, Tata and Mahindra sold a combined 570 units. Thus, a month-on-month sales drop of 5% was witnessed by the duo, when the rest of the SA new vehicle market showed a 6% month-on-month escalation. Tata’s monthly sales of 386 in September were only marginally down on August’s 389, but Mahindra recorded a more flak slowdown, slipping from 181 units in August to 155 units in September.

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However, Tata’s presence in the passenger vehicle segment of SA remained weak, with just 146 passenger vehicles sold in September. Fiat with sales of 259 units, Peugeot with 212, Mini with 209, Citroen with 207, Dodge with 168 and Mitsubishi 153, showed a fair performance in South African car market. Tata Motor’s performance was tad better in the heavy commercial vehicle sector which forms 10% of its September sales in this low volume market.

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