Tata Motors Ltd’s standalone business has been forging ahead with strong double-digit sales growth in commercial vehicles (CVs) and passenger vehicles (PVs). However, it looks like the automobile juggernaut is beginning to pay a price for sustaining this growth.
The company’s rising trade receivables indicate it is deploying more credit to push sales. During fiscal year 2018 (FY18), the standalone entity’s trade receivables, which is the amount customers (dealers) owe the firm, rose sharply by 64%, twice the rise in sales.