Tata Motors Shares Dip Amid Weak Sales and EV Declines

3 Oct 2024 , 02:33 PM

Tata Motors Limited’s shares fell over 4% to ₹925 on October 3, following a difficult sales month in September, during which shares dropped by 12%.

At the time of writing on October 3, at 2:42 pm, shares of Tata Motors Limited is trading at ₹930.60 which is a 3.58% dip than the previous close. The Stock has gained a total of 49% in the last one year and 17% since the beginning of the year.

The company reported domestic sales of 69,694 units in September 2024, down from 82,023 units in the same month last year, though there was a slight month-on-month increase of 0.4%.

The decline in sales was attributed to subdued consumer demand, seasonal factors, slower infrastructure project execution, and reduced mining activity, affecting the heavy commercial vehicle (HCV) segment.

In the electric vehicle segment, Tata Motors sold 4,680 units in September, marking a 23% year-on-year decrease and a 21% drop from August 2024. The decline was influenced by the expiration of registration and road tax waivers and the end of FAME II benefits, which impacted EV fleet sales.

Executive Director Girish Wagh reported a 19% year-on-year decline in commercial vehicle domestic sales for Q2 FY25, totaling 79,931 units, while the passenger commercial vehicle sector saw a 3% year-on-year increase.

Wagh anticipates a gradual recovery in demand for Q3, driven by the approaching festive season, increased infrastructure spending, and improving weather conditions.