Tata Motors shed 1.25% to Rs 989.10 after its total domestic sales for June 2024 stood at 74,147 vehicles, registering de-growth of 8% compared to 80,383 units in June 2023.
Total commercial vehicles sales declined 7% to 31,980 units in June 2024 as compared with 34,314 units in June 2023.Total sales for Medium and Heavy Intermediate Commercial Vehicles (MH & ICV) domestic & international business in June 2024, including trucks and buses, stood at 15,224 units compared to 14,770 units in June 2023.
Domestic sale of MH&ICV in June 2024 stood at 14,640 units, up 1.48% as against 14,427 units sold in the same period a year ago.
Girish Wagh, executive director of Tata Motors said, The M&HCV segment led the growth with 10% rise in Q1 FY25 sales volumes versus Q1 FY24. While HCV demand held up well, market sentiment remained positive in MCV segment with demand increasing in e-commerce, auto-aggregates and LPG segments. The CV passenger business continues with its robust post-pandemic recovery with school and staff transportation segments growing 39% during the quarter. Sales of small and light commercial vehicles declined by 6% in Q1 FY25 compared to Q1 FY24, primarily due to financing challenges faced by first-time users in this category.
Going forward, the forecast of a healthy monsoon, expectations of policy continuity and continuing thrust on infra related developmental projects by the Government are expected to improve the demand for commercial vehicles. The demand in staff, intercity, and stage carriage segments should also remain healthy despite the seasonal dip often seen in school transportation in Q2. We continue to remain focused on partnering our customers to success while vigilantly tracking relevant macro factors including geopolitical developments, interest rates, fuel prices and inflation.
Total passenger vehicles sales (including EV) declined 8% to 43,624 units in June 2024 from 47,359 units sold in the same period last year.
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Tata Motors sales in the domestic & international market rose 1.61% to 2,29,891 vehicles in Q1 FY25 as compared with 2,26,245 units during Q1 FY24.
Total CV sales added 6% to 91,209 units in Q1 FY25 as against 85,795 units in Q2 FY23 while total sales of PV fell 1% to 1,38,682 units in Q1 FY25 over 1,40,450 units sold in the corresponding quarter previous year.
Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, In Q1 FY25, after a boost in demand in the first half of April, due to festivities in some parts of country, the Passenger Vehicle industry saw a decline in retails (registrations) in the months of May and June, influenced by the general elections and heat waves across the country. Tata Motors wholesales of 138,682 cars and SUVs in Q1 FY25 remained flat compared to Q1 FY24, as we readjusted our wholesales in line with retails to keep channel inventory under control.
The Electric Vehicle industry was affected by the broader industry trend and the impact of significant preponement fleet sales in Q4FY24, due to expiry of FAME II subsidy in March 2024. Consequently, while the personal segment retails have grown slightly, there was a sharp decline witnessed in the fleet segment, which is expected to recover in the coming quarters.
Going forward, we foresee recovery of demand, as enquiries have remained strong despite low retails in the past two months. This strong enquiry pipeline, in addition to onset of festive season from August, augurs well for the industry. Tata Motors is fully geared up to leverage this growth opportunity on the back of strong demand for its SUV portfolio, especially Punch and Nexon, as well as new launches in the coming months.
Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
The company reported a consolidated net profit of Rs 17,528.59 crore in Q4 FY24, steeply higher from Rs 5,496.04 crore posted in Q4 FY23. Revenue from operations increased 13.52% YoY to Rs 1,19,213.35 crore in the quarter ended 31 March 2024.
The scrip shed 1.25% to currently trade at Rs 989.10 on the BSE.
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