Tata Motors Limited is experiencing a difficult period, with shares dropping over 4% to Rs 925 on October 3, following a disappointing sales performance in September. The company’s stock fell by a significant 12% throughout September.
In September 2024, Tata Motors reported domestic sales of 69,694 units, a decline from 82,023 units in the same month the previous year. However, there was a slight month-on-month increase of 0.4% in sales. The company attributed this overall decline to weak consumer demand, seasonal factors, and slower execution of infrastructure projects, which particularly affected its heavy commercial vehicle (HCV) segment.
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In the electric vehicle (EV) sector, Tata Motors sold 4,680 units in September, down from 6,050 units a year ago, representing a 23% year-on-year decrease and a 21% decline from August 2024. The company cited the expiration of tax waivers and incentives in key states as factors impacting EV fleet sales.
Girish Wagh, Executive Director at Tata Motors, noted that the company’s commercial vehicle sales for Q2 FY25 were 79,931 units, reflecting a 19% drop compared to the same quarter last year. Heavy rains contributed to a 25% year-on-year decline in HCV sales during the quarter.
Despite these challenges, Tata Motors saw a 3% increase in passenger commercial vehicle sales in Q2 FY25. Looking forward to Q3, Wagh remains optimistic about demand recovering as the festive season approaches and infrastructure spending rises. As of 1:05 pm, Tata Motors shares were trading at Rs 931, up 3.5% from the previous close on the NSE, though the shares have declined 7% this week.
