Riding on Nexon & Tiago, Tata Motors beats Honda in October car sales

Swaraj Baggonkar

Moneycontrol News

Thanks to the robust demand for new products such as Tiago and Nexon Tata Motors has dethroned Honda Cars India to clinch the fourth spot in domestic car sales.

The Mumbai-based car maker clocked sales of 16,475 passenger vehicles units during October, compared to 14,234 units sold by Honda during the same month. While Tata Motors sales grew 1 percent during the month that of Honda fell by 9 percent.

These figures are made up of only cars, utility vehicles and multi-purpose vehicles that are classified as passenger vehicles. Tata Motors also sells some commercial vans which are classified by the company as commercial vehicles. Honda does not have any commercial vehicles in India.

The Tiago made up more than half of Tata Motors sales in September climbing to the 12th position from 14th position in August. Nexon during the same month, which was also its launch month, sold 2772 units.

Tata Motors is expected to retain its lead over Honda given that the company is planning to ramp up production of the Nexon on which, as per reports, there is a waiting period of 2 months.

Honda does not have any new products to offer in the volume segment in the remaining months of the year and thus will trail the Mumbai-based company. Honda’s largest-selling model is the City sedan which has come under fire from Hyundai’s newly launched refreshed Verna.

The gap between Tata Motors and Mahindra & Mahindra, the third largest passenger vehicle maker has shrunk substantially in the last few months. While Tata Motors' monthly volumes have doubled that of M&M's has come under pressure due to lack of consumer excitement.

Experts say that at this rate of growth Tata Motors will likely overtake M&M in the next financial year given Tata Motors continued to ramp up in production. But M&M is also preparing to launch an all-new small sports utility vehicle code-named S201 in the coming months.