Tata Motors Share: Rise Of 2% On Double-Digit Sales Growth
- Stocks Updates
Sahil Patil- 0
- 7 minutes read
The Tata Motors share including the Tata EV Motors share price has skyrocketed nearly 2% in the opening trade on Monday. This happened after the automobile company reported its double-digit growth in both monthly and quarterly sales. As per the report, Tata Group experienced a 10% rise in total domestic sales at 72,997 units back in December 2022 against 66,307 units in December 2021. Sales for the quarter ending December 31, 2022 (Q3 FY23) increased by 14% over the corresponding quarter last year to 2,28,169 units.
Owing to the substantial sales numbers, Tata Motors share price BSE has risen by 1.8% to ₹395.20 on the Bombay Stock Exchange. The stock of the automobile company opened at a cost of ₹392 against its previous closing of ₹388.1. That said, the market cap rose to ₹1.31 lakh crore. As of May 12, 2022, the index heavyweight is nearly 6% higher than its 52-week low of ₹366.05. The 52-week high for the index heavyweight was achieved on January 18, 2022, at ₹528.55.
In the past year, the Tata Motors share has given a negative return of 21%. On the contrary, it has also nosedived to nearly 6% in the six-month period. In the last month, the stock has dropped to 10% in comparison with a 3% fall in the BSE Auto Index and BSE Sensex.
Tata Motors, the Mumbai-headquartered automobile company, has also mentioned in an exchange filing on Sunday that in December 2022, the company’s domestic sales grew by 10%, led by passenger vehicles, which grew by 13.4% to 40,043 units from 35,299 in December 2021. Including exports, electric passenger vehicle sales in December 2021 were 2,355 units, a 64.2% increase.
The total domestic sales for the third quarter ended December 2022 were 2,23,001 units, a 17.7% increase over 1,89,531 units in the year 2021. Compared to the same period last year, commercial vehicle sales fell 4.2% to 95,914 units from 1,00,070. To keep up with the latest stock updates, take a look at https://www.newsmagnify.com/category/stocks/updates/.
The Executive Director of Tata Motors, Girish Wagh stated on Tata Motors share price BSE,
“Tata Motors commercial vehicles domestic sales in Q3FY23 at 91,704 units grew 1.3% over Q3FY22, while being 2% lower than those recorded in Q2FY23. Our continued focus on retail during the quarter resulted in retail sales surpassing wholesale by 13% in December’22, by 6.3% in Q3FY23, and reducing inventory as we transition towards BSVI phase-2 norms.”
He also added,
“The growth in Q3FY23, was led by stronger sales of MHCVs (+35% vs Q3FY22) and a robust recovery in passenger carriers demand (+84% vs Q3FY22). Improving fleet utilisations, pick up in road construction projects and increase in cement consumption catalyzed the demand recovery for MHCVs. CV exports, however, remained subdued due to the prevailing economic situation in most overseas markets.”
It also maintained a close eye on the evolving geopolitical situation, inflation, and interest rate risks on both the supply and demand sides of the equation. Moving forward, the company anticipates good demand for replacements, specifically MHCVs, in Q4 FY23.
The Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., Shailesh Chandra mentioned,
“For Tata Motors passenger vehicles, CY22 has been a momentous year as we outpaced industry growth and crossed the distinctive milestone of 5 lakh units comfortably to post wholesale of 526,798 units. Last quarter (Q3FY23) was one of the best quarters for the PV industry with strong retail from new launches, robust festive demand, and adequate supply of vehicles.”
Considering the sales of EVs or Electric Vehicles, he stated that EVs have seen the highest-ever sales at 12,596 units (growth of 116.2%) in Q3FY23. Simultaneously, Tata EV Motors share price has also crossed the cumulative sales milestone of 50,000 units, as the latest stock updates mention. Mr. Chandra then added,
“Tiago.ev received tremendous response, post the bookings opening during the quarter; deliveries to start in Jan’23. Going forward, we expect the growth momentum for EVs to remain strong with their rising popularity and the announcement of progressive policies by several states. Overall, we expect the PV industry to continue witnessing robust demand in the next quarter. We intend to remain vigilant and closely monitor any possible impact on the supply side due to rising COVID cases globally.”
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