Tata Motors' Shares Jump After PV Sales Figures Reveal Company Has Surpassed Hyundai In December
This year, on January 1, the automaker reported a 50 per cent increase in total passenger vehicle sales to 35,299 units in December 2021.
In the same month a year ago, the business sold a total of 23,545 units.
Tata Motors' stock soared as much as 4 per cent on 3 January after the automaker released its December sales figures. As per the reports, it overtook Hyundai Motor India to become the domestic market's second-largest seller of passenger vehicles for the first time in nearly a decade.
On the BSE, Tata Motor’s shares were 2.5 per cent higher at Rs 494.2 on 3 January morning. The stock has soared almost 165 per cent in the last year, compared to the benchmark Nifty 50's 25 per cent rise.
This year, on January 1, the automaker reported a 50 per cent increase in total passenger vehicle sales to 35,299 units in December 2021. In the same month a year ago, the business sold a total of 23,545 units. In the same month last year, the company achieved its highest-ever monthly sales, highest-ever quarterly sales from October to December 2021 and highest-ever annual sales since its inception in 2021.
Despite a production shortage due to the ongoing semiconductor crisis, Shailesh Chandra, President, Tata Motors Ltd.'s Passenger Vehicles Division Unit, stated the company's passenger vehicle business achieved a number of new milestones during the quarter.
According to Economic Times, he said: "Decade high quarterly and monthly sales — 99,002 units in Q3 FY22 (growth of 44 per cent vs Q3 FY21) and 35,299 units in Dec '21 (growth of 50 per cent vs Dec' 20) were recorded. In addition, the company also posted calendar year sales of 3,31,178 units (CY21), the highest ever since the inception of the PV Business.”
“The overwhelming market response to Tata Punch launched in October '21 is further boosting demand for the company's "New Forever" range of cars and SUVs," Chandra added.
Meanwhile, as per CNBC TV18, Girish Wagh, Executive Director, Tata Motors, said: "Construction and infrastructure spending by central and state Governments plus rising activity in sectors such as mining, petroleum-oil-lubricants and allied industries facilitated the demand for M&HCVs.”
“Going forward, we expect the situation to remain fluid as the semiconductor shortage continues, instances of Covid begin to rise and underlying demand continues to remain under pressure. We are keeping a close watch on the evolving situation and sharpening our agile, multi-pronged approach to fulfil customer orders”, he further noted.
However, Tata's electric vehicle sales increased by 44 per cent year over year. As per the reports, analysts anticipate that the new Tigor EV (qualified for FAME-II subsidy) would boost EV sales, while the recently launched SUV Punch (less than 8,000 unit sales in October 2021) will help ICE or internal combustion engine market share.
On the other hand, Maruti Suzuki, the country's largest carmaker, saw its wholesale numbers drop by nearly 12 per cent year on year to 1,13,851 vehicles. Hyundai Motor India witnessed its monthly and annual sales drop by about 13 per cent and 32 per cent, respectively — 32,312 units were sold wholesale by the Korean automaker.
Mahindra further improved its performance with a wholesale of 15,338 units —thanks to strong demand for its new additions, such as the Thar and the XUV700.
However, the carmaker is concerned about the prolonged chip shortage. The other top carmaker, Toyota Kirloskar Motor, reported a 45 per cent year-over-year growth in wholesale numbers of 10,382 units in December, but a 17 per cent drop from the previous month's sales.
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