Tata Motors shares are in discussion to see increased trading activity on October 22, following the company’s announcement of receiving an order from the UP State Road Transport Corporation for 1,000 diesel bus chassis. This order was secured through a competitive e-bidding process and will be fulfilled in phases according to mutually agreed terms.
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The Tata LPO 1618 bus chassis, designed for durability and low operating costs, is anticipated to enhance mobility for the transport corporation. The company expressed eagerness to begin the supply of these chassis as per the guidelines set by UPSRTC. This new order comes on the heels of a larger order for 1,350 chassis that Tata Motors successfully delivered last year.
In the past year, Tata Motors shares have surged by 40%, with a year-to-date increase of 14%. However, the company recently reported an 11% drop in group wholesales, which includes Jaguar Land Rover, totaling 304,189 units for the second quarter of the current fiscal year.
Global wholesales for passenger vehicles in Q2 FY25 fell 6% to 130,753 units, while commercial vehicle sales, including the Tata Daewoo range, declined by 19% to 86,133 units compared to the same quarter last year.
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Despite the recent downturn in sales, Tata Motors remains optimistic about the long-term growth of the electric vehicle sector. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle and Tata Passenger Electric, stated the company aims to sell 100,000 electric vehicles in the current financial year, viewing the sales slump as a temporary setback.
