In the first hour of trading on July 3, Tata Motors shares increased more than 1% to reach a 52-week high after the company’s overall June sales exceeded Nomura’s projection.
The automaker sold 81,673 vehicles overall in June, 1.1 percent fewer than the 82,570 units it sold in the corresponding month last year. Despite the year-over-year dip, total sales nonetheless above Nomura’s expectation of 78,000 units, a worldwide research and brokerage business.
However, since total sales growth remained muted, shares of Tata Motors declined from their day’s highs. Similar to this, at 09.51 am on the National Stock Exchange, the company’s shares were trading 0.2 percent higher at Rs 596.70, off their 52-week high of Rs 602.30, achieved earlier in the session.
Commercial vehicle (CV) sales also decreased by 8%, from 37,265 units sold in the same period last year to 34,314 units sold this year. However, sales of passenger cars (PV) rose 5% from the same month last year to 47,359 units, up from 45,305 units. To sum up, overall domestic sales in June increased by 1% year over year (YoY) to 80,383 units.
In terms of the April-June quarter, overall CV decreased 15% YoY while PVs increased 8%. The strong growth in electric vehicle (EV) sales, which increased by over twofold year over year to 19,346 units, the highest ever in any quarter, was credited with the increase in PV sales.
Despite June’s generally slow sales, the corporation is still optimistic about posting significant increase in the upcoming quarters. “The recently released Altroz iCNG has garnered a lot of praise and outstanding consumer feedback.
