Tata Motors stock soars 3% after PV sales increase 50% yoy

3 Jan 2022 , 03:33 PM

Shares of Tata Motors soared on Monday session after the company recorded sales numbers for the month of December 2021.

The auto company announced its sales in the domestic and international market, for Q3FY22, which stood at 1,99,633 vehicles, compared to 1,58,218 units during Q3FY21. Total MHCVs sales in Q3FY22 including MHCV Truck, Buses and International Business stood at 26,329 units compared to 21,476 units in Q3 FY21.

The company’s total domestic sales for December 2021 came in at 66,307 units as compared to 53,430 units sold in December 2020. the company’s total commercial vehicle sales saw a 4 percent YoY rise at 34,151 units in December 2021.

Further, in PV segment, the company reported a 50 per cent jump in total passenger vehicle sales to 35,299 units in December 2021.

Mr. Girish Wagh, Executive Director, Tata Motors Ltd. said, “Tata Motors’ Commercial Vehicle domestic sale in Q3 FY22 at 90,529 units was ~15% higher than the previous quarter (Q2 FY22) and 10% higher than the same quarter last year (Q3 FY21). The retail was ahead of whole sale by 15% in December’21, enabling inventory alignment. The SCV and ILCV segments continued to benefit from the growth in e-commerce and the increasing need for last-mile delivery. Construction and infrastructure spending by central and state Governments plus rising activity in sectors such as mining, petroleum-oil-lubricants and allied industries facilitated the demand for M&HCVs. The International business too continued its recovery momentum and grew by ~10% over the previous quarter (Q2 FY22) and 33% over the same quarter last year (Q3 FY21). Going forward, we expect the situation to remain fluid as the semiconductor shortage continues, instances of Covid begin to rise and underlying demand continues to remain under pressure. We are keeping a close watch on the evolving situation and sharpening our agile, multi-pronged approach to fulfil customer orders.”

Mr. Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors Ltd. said, “Tata Motors PV business growth journey continued and set several new milestones during the quarter despite witnessing a shortfall in production due to the ongoing semi-conductor crisis. Decade high quarterly and monthly sales- 99,002 units in Q3 FY22 (growth of 44% vs Q3 FY21) and 35,299 units in Dec’21 (growth of 50% vs Dec’20) were recorded. In addition, the company also posted calendar year sale of 3,31,178 units (CY21), highest ever since the inception of the PV Business. The overwhelming market response to Tata Punch launched in Oct’21 is further boosting demand for the company’s “New Forever” range of cars and SUVs. Records were also created on the EV front as EV sales witnessed a new peak of 5,592 units in Q3 FY22 (growth of 345% vs Q3 FY21).”

“Consequently, EV penetration touched 5.6% of PV Sales during the quarter versus 1.8% in the same period last financial year. EV sales also touched 10,000 units in 9MFY22 and crossed 2,000 monthly sales landmark for the first time in Dec’21 (2,255 units). The ever-increasing demand for Nexon EV and Tigor EV as well as progressive revival of the EV fleet segment were instrumental in driving this steep growth. Going forward, semi-conductor supplies will remain the key source of uncertainty. Additionally, the impact of the new strain of Covid needs to be closely tracked. We will continue to work on business agility plan and take proactive actions to mitigate these risks,” Shailesh Chandra said.

The stock closed at Rs497 up by Rs14.65 or 3.04% from its previous closing of Rs482.35 on the BSE. The scrip opened at Rs492.25 and has touched a high and low of Rs500.80 and Rs492.25 respectively.