Tata Motors, the leading automobile manufacturer, has been soaring to new heights in the stock market, propelled by a promising growth outlook for its luxury division, Jaguar Land Rover, and the recent approval for a public offering of its subsidiary, Tata Technologies.
On July 3, Tata Motors’ shares surged over 1 percent, hitting a sensational 52-week high during early trade. The exhilaration was triggered by the company’s exceptional performance in June, with total sales surpassing the estimates of esteemed global research and broking firm, Nomura. The automaker recorded total sales of 81,673 units in June, a slight dip of 1.1 percent compared to the same period last year but still outperforming Nomura’s projection of 78,000 units.
Although Tata Motors’ share prices retreated from their peak as the day progressed due to relatively modest sales growth, the stock still demonstrated resilience, trading 0.2 percent higher at Rs 596.70 on the National Stock Exchange. It was a momentous achievement, considering the intraday high of Rs 602.30, which had been attained earlier in the session.
While commercial vehicle (CV) sales experienced an 8 percent decline, with 34,314 units sold compared to 37,265 units in the previous year, passenger vehicle (PV) sales painted a brighter picture. PV sales increased by an impressive 5 percent, reaching 47,359 units in June, up from the 45,305 units sold during the same period in 2022. Adding to the positive momentum, total domestic sales climbed 1 percent year-on-year to 80,383 units in June.
For the April-June quarter, Tata Motors observed a 15 percent year-on-year slip in CV sales, while PV sales saw an encouraging 8 percent rise. The noteworthy growth in PV sales was primarily attributed to the robust performance of electric vehicles (EVs), which witnessed a staggering more than twofold increase to 19,346 units—an all-time high for any quarter
Despite the subdued overall sales figures in June, Tata Motors remains optimistic about its future prospects. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, expressed confidence in the company’s growth trajectory. Chandra highlighted the enthusiastic response received for the recently launched Altroz iCNG and the sustained demand for Tiago EV and other EV models, underscoring the strong market appeal of Tata Motors’ offerings. Moreover, the company anticipates a surge in demand during the upcoming festive season in the second half of the July-September quarter, while assuring that the supply side remains stable.
The relentless upward trajectory of Tata Motors’ shares in recent weeks reflects a prevailing bullish sentiment among investors. The positive sentiment stems from the bright future anticipated for the company’s luxury arm, Jaguar Land Rover, and the recent approval of the public offering of Tata Technologies—a move that is expected to alleviate the company’s debt burden.
