Shares of Tata Motors gained nearly 2% in opening trade on Monday after the automobile major reported double-digit growth in its monthly as well as quarterly sales. The Tata Group company has reported a 10% rise in total domestic sales at 72,997 units in December 2022 as against 66,307 units in the same month of the previous year. For the quarter ended December 31, 2022 (Q3 FY23), the total sales grew by 14% year-on-year to 2,28,169 units as compared to 1,99,634 units during the corresponding quarter last fiscal.
Boosted by strong sales numbers, Tata Motors share price gained as much as 1.8% to ₹395.20 on the Bombay Stock Exchange (BSE). The auto stock opened at ₹392 against the previous closing price of ₹388.1, while the market capitalisation rose to ₹1.31 lakh crore. The index heavyweight trades nearly 6% higher than its 52-week low of ₹366.05 touched on May 12, 2022. It hit its 52-week high of ₹528.35 on January 18, 2022.
Tata Motors shares have given a negative return of 21% in the last one year, while it has fallen nearly 6% in the six month period. In the past one month, the stock has dropped 10% compared with 3% fall in the BSE Sensex and BSE Auto index.
The Mumbai-headquartered company in an exchange filing on Sunday said that its total domestic sales rose by 10% in December 2022, led by passenger vehicles, which grew by 13.4% to 40,043 units as against 35,299 units in December 2021. The sales figures for electric passenger vehicles, including exports, stood at 3,868 units as compared to 2,355 units in December 2021, up 64.2%.
For the third quarter ended December 2022, the total domestic sales was up by 17.7% at 2,23,001 units as compared to 1,89,531 units in the year ago period. However, total commercial vehicle sale dropped 4.2% to 95,914 units versus 1,00,070 units in the same period last fiscal.
Girish Wagh, Executive Director, Tata Motors said, “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.”
“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 catalysed the demand recovery for MHCVs. CV exports, however, remained subdued due to the prevailing economic situation in most overseas markets.”
Going forward, the company expects a good replacement demand, especially in MHCVs in Q4 FY23, as it also maintained a close watch on the evolving geopolitical situation, inflation and interest rate risks on both the supply and demand.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd. said, “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 retails from new launches, robust festive demand, and adequate supply of vehicles.”
On electric vehicle sales, Chandra said that EVs posted their highest ever sales in Q3FY23 at 12,596 units (growth of 116.2%) and crossed the landmark cumulative sales milestone of 50,000 units. “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 case globally.”