The Tata Group’s Mumbai-based automotive arm performed better in the passenger vehicle (PV) segment, the data showed
Tata Motors shares rose 1.5 per cent to hit a fresh lifetime high of Rs 804 on January 2. This was after the carmaker reported a 5 per cent on-year rise in total sales in December.
Tata Motors reported a marginal increase in its overall sales in the third quarter of the current financial year (Q3FY24) at 234,981 vehicles, compared to 228,169 units during the same period of previous financial year.
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The commercial vehicles (CV) demand remained muted as 34,180 units were sold in December 2023, recording a marginal 1 per cent increase compared to the same period in the previous financial year. The overall CV sales in Q3FY24 also recorded a 1 per cent Y-o-Y increase at 96,526 units, the company said. In this category, passenger vehicles outperformed others at 19 per cent growth Y-o-Y in Q3 FY24.
Attributing the muted CV sales to a number of reasons, Girish Wagh, the Executive Director of Tata Motors, said, “The Y-o-Y growth trend witnessed during past quarters paused in Q3 FY24 on account of the higher base effect, impact of elections held across 5 states, and the post festive seasonal slowdown in rural consumption. Going forward, we expect demand to improve in Q4 FY24 across most segments of the CV industry.”
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The Tata Group’s Mumbai-based automotive arm performed better in the passenger vehicle (PV) segment, the data showed. Its total domestic PV sales, including electronic vehicles, recorded a 9 per cent jump at 43,470 in December 2023, compared to the same period in FY23. The overall sales in this segment were also up 5 per cent at 137,875 units in O3FY24 compared to Q3FY23.
These sales included those of Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, both of which are subsidiaries of the organisation.
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Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, exuded confidence in PV sales growth, remarking that the industry is expected to post its highest-ever sales in the calendar year 2023, crossing the 4 million mark. “Coming off a high base, the industry recorded a single-digit growth overall, with the key highlight of this moderate rise being the sharp growth registered in emission-friendly product categories. Both EV and CNG segments posted growth greater than 90 per cent and 25 per cent, respectively, signalling a growing preference for green and smart technologies by Indian customers,” he said.
Shares of the automaker have surged nearly 13 per cent in the past month, scaling greater all-time highs in the recent sessions of the back of its strong growth prospects.
Tata Motors was also the only Nifty 50 stock that saw its price double in 2023 as it ended the year near its all-time highs. The scrip also makes it to the top picks among auto stocks for most brokerages on the back of a robust outlook for its JLR business, a strong prospects for its electric vehicles, and demand for SUVs amid a rise in disposable incomes.
