Tata Motors Takes a Hit as Auto Sales Plummet 8% in August

2 Sep 2024 , 12:12 PM

Shares of Tata Motors are still up more than 50% over the previous month despite the decline.

Early on September 2, Tata Motors shares dropped by 2% as a result of a decline in the company’s monthly auto sales for August. Shares of Tata Motors were trading on the NSE at Rs 1,098.35 at 09.45 am. Shares of Tata Motors are still up more than 50% over the previous month despite the decline.

August sales for the car major were 71,693 units, down 8% year over year from 78,010 vehicles sold in the same month of the previous fiscal year.

Not only that, but August saw a decline in both passenger and commercial vehicle sales (CV and PV). While PV sales decreased by 3% year over year to 44,486 units, total CV sales declined 15% to 27,207 units in August from 32,077 units in the previous year.

Moving forward, Medium and Heavy Commercial Vehicles (M&HCV) volumes are expected to rise by about 4% in FY25, according to brokerage firm Motilal Oswal Financial Services. This would translate into a 4% residual growth rate, or a monthly run rate of over 17,400 units. MOFSL projects a flattish trend for light commercial vehicles (LCVs) in FY25, which translates to a run rate of 19,300 units or a residual growth of 5%.

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