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Our Bureau

Mr Ravi Kant, Executive Director.

Mumbai , June 8

TATA Motors today reported a continued decline in domestic truck sales, but a 2.74 per cent increase in total vehicles sold for May 2005 to 30,589 units (29,774 units in May last year).

The company sold 15,387 commercial vehicles overall, but registered a 7.93 per cent drop in domestic sales to 13,333 units (14,391 units). The LCV sales grew by 41.98 per cent to 6,162 units (4,340 units), but M&HCV sales declined by 28.65 per cent to 7,171 units (10,051 units). Commercial vehicles export touched 2,054 units.

The cumulative sale of commercial vehicles so far in this fiscal year, was down 3.35 per cent to 25,546 units (26,432 units).

"Shortage of certain critical items continued in May 2005 and the company is working closely with the suppliers to improve the situation," an official statement said. News reports last month had said that for similar reasons, the company's Tata Motors' April truck sales had fallen to 10,159 units (12,050 units) for similar reasons.

When contacted, Mr Ravi Kant, Executive Director, said that the component supply problem was mainly with reference to the fuel injection pump required for Euro 2 compliance. MICO's Jaipur plant is the exclusive supplier of the product to Tata Motors and the plant has been under stress to supply. "It is a question of ramping up," he said. Asked if the commercial vehicle business cycle had anything to do with the sales dip, he said, "So far, it has been strong in most parts of the country. It is holding out, but then it has also not been tested. In any case, June should be a far improved scene and by July, things should be normal."

Mr Ravi Kant said that LCV sales had been driven in part by good demand for the recently introduced mini-truck, Ace. The Ace gets its fuel injection pump from another vendor, not MICO.

In passenger vehicles, Tata Motors registered a 1.98 per cent growth in domestic sales for May to 14,005 units (13,732 units). The Indica sold 8,480 units (8,463 units), the Indigo - 3,031 units (3,024 units) and the Sumo and Safari - 2,494 units (2,245 units). Cumulative sales of passenger vehicles gained by 4.03 per cent to 26,741 units (25,704 units).

The company exported 3,251 vehicles in May, a year-on-year YoY rise of 96.91 per cent.

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