Tata Motors shares declined up to 2% on the bourses BSE and NSE on Monday as the automaker reported weak monthly sales figures for October 2019. Tata Motors recorded a 1.9% drop to Rs 171.50 on BSE and fell to Rs 171.55 on NSE today.
The stock has fallen 2.59% in the last 2 sessions. The company on November 1 reported a 33% fall in its October 2019 sales to 41,354 units last month. The carmaker had sold 62,264 units in the same month last year.
"The enquiries have increased compared to last month in M&HCV and I&LCV with fleet owners initiating discussions for replacement of older vehicles. Overall system stock is now at a multi-quarter low, which coupled with increasing enquiries, and the government's thrust on infrastructure investments will help firm-up volumes and realisations in the coming months," said Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors Ltd.
Tata Motor's total domestic sales for October 2019 fell 32% to 39,152 units against 57,710 units recorded in the corresponding month last year. "In October retail sales were the highest in this fiscal recording a 70% increase month-on-month," said Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd."We remain optimistic that the positive sentiments of the festive season will lead to a structural recovery in the market," he added.
While total passenger vehicle sales fell 28% to 13,169 units compared to 18,290 units year-on-year, total commercial vehicle sales were down 36% to 28,002 units against 43,813 units. Commercial vehicle exports fell 54% to 2,019 units against 4,393 units year-on-year. Automakers' domestic medium and heavy commercial truck sales fell 63% to 4,893 units compares to 13,185 units recorded in the same month last fiscal.