Tata Motors eyes record sale in Q4 FY22 backed by its EV, CNG cars

Homegrown auto manufacturing company Tata Motors is likely to continue outpacing the rest of the industry and is eyeing record sales in the January-March quarter (Q4) of FY22.

In Q3 FY22, Tata Motors was the second-largest player in utility vehicles with a market share of 18 per cent and its total market share was 13 per cent, the third-largest in the market. Tata Motors, which had already overtaken Hyundai Motor in terms of SUV sales in the December quarter, may overtake Hyundai for the entire financial year if it can meet its production and sales targets.

The maker of the Tiago and Safari has posted the highest annual sales in the company’s history in Q3 FY22. Tata Motors, for the first nine months of FY22, had posted revenue of Rs 22,000 crore and posted revenue of Rs 8,600 crore in Q3 FY22. Tata Motors had recorded its highest-ever SUV sales of 28,108 units, the highest-ever EV sales of 2892 units in January 2022.

Tata Motors, which had joined CNG bandwagon earlier this month, saw its CNG versions of Tigor and Tiago both sell 3,000 units in just a few weeks. The company expects its CNG sales to grow up to 20 per cent in the next three to five years period and its EV sales would account for around 20 per cent of its total sales over the next few years.

Shailesh Chandra, President, Passenger Vehicle and Electric Vehicles, Tata Motors, as per a PTI report said that in next three to five years, petrol would go down to about 50 per cent and CNG will go up to 20 per cent. Chandra further added that the EVs are also likely to go up 20 per cent.

Currently, Tata Motors has around 1 per cent penetration in India’s electric vehicle segment, while it dominates passenger vehicles with an 80 per cent market share. Tata Motors had recorded its highest-ever SUV sales of 28,108 units, the highest-ever EV sales of 2892 units in January 2022.

Despite the semiconductor shortage around the globe that haunts many of the domestic vehicle manufacturers, Tata Motors sold 40,777 units of PVs in India last month, marking a 51 per cent sales growth as compared to January 2021.

Meanwhile, JPMorgan, which has also initiated coverage on the Indian auto firm and assigned an overweight stance, believes that the firm can achieve its zero net debt target by FY24.

The stock of Tata Motors gained nearly 3 per cent in early trade today after the auto major's UK arm Jaguar Land Rover announced a partnership with NVIDIA for all new vehicle platforms slated for production beginning in 2025.