Tata Motors shares gain as total sales jump 14% YoY in December quarter

Shares of Tata Motors climbed 2 per cent in Monday's trade after the Tata Group firm reported a 14 per cent year-on-year (YoY) growth in total auto sales in December quarter. For the quarter, domestic sales rose 10 per cent to 72,997 units from 66,307 units in the year-ago month, up 10 per cent. For the December quarter, sales were up 17.7 per cent YoY at 2,23,001 units against 1,89,531 units YoY.

The combined sales (domestic and international markets) came in at 2,28,169 units for the December quarter, up 14.29 per cent over 1,99,634 units in the year-ago quarter.

Following the sales data, the scrip rose 1.83 per cent to hit a high of Rs 395.20 on BSE. Despite this, the stock is down nearly 10 per cent in the last one month.

Girish Wagh, Executive Director at Tata Motors said Tata Motors’ commercial vehicles domestic sale in Q3FY23 stood at  91,704 units, up 1.3 per cent YoY.

"Our continued focus on retail during the quarter resulted in retail sales surpassing wholesale by 13 per cent in December and by 6.3 per cent in Q3FY23. The growth in Q3FY23, was led by stronger sales of MHCVs (up 35 per cent YoY) and a robust recovery in passenger carriers demand (up 84 per cent YoY). Improving fleet utilisations, pick up in road construction projects and increase in cement consumption catalysed the demand recovery for MHCVs," Wagh said.

Wagh however noted that CV exports remained subdued due to the prevailing economic situation in most overseas markets.

"Going forward, we expect a good replacement demand, especially in MHCVs in Q4 FY23, as we also maintain a close watch on the evolving geopolitical situation, inflation and interest rate risks on both the supply and demand,” he said.

Shailesh Chandra, Managing Director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said" “For Tata Motors passenger vehicles, CY22 has been a momentous year as we outpaced industry growth and crossed the distinctive milestone of 5 lakh units comfortably to post wholesale of 526,798 units. Last quarter (Q3FY23) was one of the best quarters for the PV industry with strong retails from new launches, robust festive demand, and adequate supply of vehicles."

Tata Motors PV posted the highest ever quarterly and monthly retails in Q3FY23 and December, respectively.

"Overall, we expect the PV industry to continue witnessing robust demand in the next quarter. We intend to remain vigilant and closely monitor any possible impact on the supply side due to rising Covid case globally," Chandra said.

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