Crippled by the recession, the Tata Motors sales drastically went down in December 2008. The crumbling global economy and tightening credit market has influenced the market dropping car sales. Many car manufacturer have experienced the strong blow.
Tata’s passenger car sales dropped by 31 percent while its commercial division reported a 51 percent reduction in sales. In December, the overall sales was just 25,219 units, 47 percent lower from December 2007.
The company had a sequence of success like the launch of world's cheapest car Nano, acquisition of the premium car brands Jaguar and Land Rover from Ford and the latest update is sponsorship role in Ferrari’s Formula One. But all this success did not compliment their car sales.
According to the Company, “ A deepening recessionary trend in the economy, coupled with continuing credit squeeze and high interest rates, has further depressed customer sentiments. As a result, automobile purchases are being severely impacted.”
The credit crisis is taking its control over every sector. The car industry is also under its grip arising a serious concern for car manufactures.