Tata Motors’ share price slumped on Tuesday morning as the company’s sales data for June disappointed investors.
Total commercial vehicle sales reached 31,980 units, down 7% from the 34,414 units sold in June 2023.
Passenger vehicle sales were 43,624 units, an 8% decline from the 47,359 units sold in June 2023.
Global research firm, Nomura also said that the company’s sales missed its estimates.
Price Action: Tata Motors’ share price was down 0.71% to trade at ₹994.95 as the markets opened on Tuesday.
Tata Motors’ share price slumped on Tuesday morning as the company’s sales data for June disappointed investors.
What Happened: The Tata Group company’s total sales for the month of June came in at 75,604 units, down around 7.4% from the 81,673 units it sold in June 2023. The company’s total domestic sales for June amounted to 74,147 units, a decrease of about 8% from the 80,383 vehicles sold in the same month last year.
Total commercial vehicle sales reached 31,980 units, down 7% from the 34,414 units sold in June 2023. Passenger vehicle sales were 43,624 units, an 8% decline from the 47,359 units sold in June 2023. Additionally, electric vehicle sales dropped 34% year-on-year to 4,657 units.
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Analyst Reactions: Motilal Oswal said Tata Motors focused on maintaining lean channel inventory amid weak retail sales, which led to disappointing performance in June.
In commercial vehicles (CVs), Tata Motors wholesales remained stable, with single-digit year-on-year declines. Tata Motors’ passenger vehicle (PV) volumes fell 8% year-on-year to 43,624 units, falling short of the brokerage’s expectations.
The analysts also noted that Tata Motors’ electric vehicle (EV) sales were heavily impacted in the June quarter due to the expiry of the FAME2 subsidy in March 2024, resulting in a 34% year-on-year decline to 4,657 units in June.
Despite these challenges, the brokerage said that the company remains optimistic about a demand recovery in coming months, driven by healthy enquiry levels and the onset of the festive season in August. Global research firm, Nomura also said that the company’s sales missed its estimates.
Price Action: Tata Motors’ share price was down 0.71% to trade at ₹994.95 as the markets opened on Tuesday.
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