Tata Motors shares rally 3% as sales pick up

“The PV industry continued to grow robustly in Q3FY21, owing to pent-up demand, strong festive season and shift towards personal mobility. We are continuing to debottleneck the supply chain and ramp up our output to meet the increased demand while addressing the availability of electronic components,” said Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors.

With the growing popularity of Nexon EV, the company also posted an impressive sale in EVs with the highest-ever quarter wholesale of 1,253 units in Q3FY21 and 418 units in Dec’20, he added.

However, sales of commercial vehicles (CV) declined. CV sales in December 2020 fell 4 percent to 32,869 units from 34,082 units while that in Q3FY21 declined to 89,323 units from 92,672 units.

However, there was an improvement in the numbers MoM.

“Tata Motors’ Commercial Vehicle domestic sales in Q3FY21 at 82,155 units was 48% higher than the previous quarter and recovered to be broadly in line with Q3FY20 (-3.5%). M&HCVs and ILCVs led the recovery, growing by 10% and 7% respectively over Q3FY20, with higher demand in infrastructure including road construction, mining and e-commerce,” said Girish Wagh, President, Commercial Vehicles Business Unit, Tata Motors.

The offtake continued to be higher than retail to support sequential month on month growth in retail while ensuring healthy inventory levels in the pipeline, he added.

“We continue to monitor and work on the supply chain to improve availability, especially of electronic components, which impacted the output at the end of Q3,” Wagh said.

The stock price of Tata Motors gained as much as 3.51 percent to Rs 193.00 apiece on the BSE. At 10:05 am, the shares were trading at Rs 190.85 apiece, up 2.36 percent as compared to a 0.47 percent gain in the benchmark Sensex.