Shares of Tata Motors climbed 3 per cent to hit an over seven-month high level of Rs 190 on the BSE on Thursday after the company reported a 12 per cent decline in total vehicle sales in domestic market to 44,254 units in December. The stock was trading at its highest level since May 10, 2019.
Tata Motors had sold 50,440 units in the same month in 2018, Tata Motors said in a statement.
The December domestic sales numbers were better than November when it reported a 25 per cent year-on-year decline in total domestic sales at 38,057 units.
Total passenger vehicle sales in December stood at 12,785 units as against 14,260 units in the same month previous year, down 10 per cent.
The management said that in December, retail sales of passenger vehicles was 83 per cent higher than the off-take and the dealer network stock has been reduced to lowest-ever level. Having almost completed the planned production and dispatches of BS IV, the company will start moving to BS VI production and dispatches from January and step up volumes in the coming months.
Overall commercial vehicles sales continued to grow for the second month in a row, with Medium and Heavy Commercial vehicle (M&HCV) sales higher than in November.
“Inquiries continued to increase gradually, with fleet owners realizing the economic benefits of replacement of their older vehicles now. Increasing enquiries and lower stocks augur well for future volumes and realization, an early indication of which can be seen in December,” the company said.
In the past one month, Tata Motors’ stock hsa outperformed the market by surging 18 per cent, as compared to 2 per cent rise in the S&P BSE Sensex.
The counter has seen huge trading volumes today, with a combined 24.5 million equity shares changing hands on the NSE and BSE till 12:16 pm.
Source: Maalaimalar
