Share price of Tata Motors rose over 8% in Monday's trade despite company's wholly owned Jaguar Land Rover reporting a 12% drop in its retail sales for the fiscal year 2019/20 at 508,659 vehicles.
This was primarily as a result of the coronavirus pandemic significantly impacting sales in the fourth quarter of the fiscal, Tata Motors said.
However, the company said that it generated double-digit growth in the last two quarters in China and signalled a recovery in sales due to ease in lockdown measures.
As per automaker's press release, sales for FY19-20 have been impacted across all regions with lower figures in North America (7.5% down on record prior year), China (8.9%), UK (9.6%), Europe (16.1%) and overseas (20.3%).
"China had generated double-digit growth in Q2 and Q3 and with lockdown measures easing, nearly all of the company's retailers in the region have now reopened and sales are recovering," the auto maker added.
Following the announcement, Tata Motor share price rose 8.46% to an intraday high of Rs 83.35 on BSE today and traded in a wide range of Rs 7.9 today.
Tata Motors' stock higher than 5 and 20-day moving averages but lower than 50 days, 100 and 200-day moving averages. The stock price of Tata Motors has risen 8.35% in one week and 4.01% in one month.
Felix Brautigam, Jaguar Land Rover Chief Commercial Officer said," Despite the impact of regulatory change, shifting consumer tastes, Brexit and ongoing trade tensions, sales for Jaguar and Land Rover were showing improvement until the coronavirus pandemic hit in the fourth quarter. "Through the year, our diverse portfolio of Jaguar sports cars, SUVs, sedans and crossover vehicles continued to excite customers across the globe.
"In light of the ongoing coronavirus situation, Jaguar Land Rover has temporarily suspended production at its facilities outside China," company's filing said.
Share of Tata Motors closed 4.75% higher at Rs 80.50 on BSE.