Tata Motors Shares Rise Marginally After Flat Business Update

Tata Motors shares saw a modest uptick of over 2% following the release of its business update, which highlighted a slight increase in total domestic sales despite challenges in the commercial vehicle segment.

In its December sales report, Tata Motors recorded a marginal 1% growth in total domestic sales, which amounted to 76,599 units compared to 76,138 units in the same period last year. The company reported that passenger vehicle sales, including electric vehicles (EVs), rose by 1% to 44,289 units, up from 43,675 units in December 2023.

However, the commercial vehicle segment saw a slight dip, with total sales dropping by 1% to 33,875 units from 34,180 units in the year-ago period. Within the medium and heavy commercial vehicles (MH&ICV) category, domestic sales stood at 15,968 units for December 2024, down from 16,851 units in December 2023. For third quarter of financial year 2025, sales in this category were marginally lower at 44,023 units compared to 44,365 units in third quarter of financial year 2024.

Looking ahead, Girish Wagh, executive director of Tata Motors Ltd., expressed optimism for the commercial vehicle sector, anticipating a rise in demand in Q4 financial year 2025 across various segments. He highlighted key factors such as the government's focus on infrastructure spending and growth in end-use segments as positive drivers for the industry.

In the passenger vehicle segment, Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., noted that CY24 marked the fourth consecutive year of record sales for the company, with a total 5,65,000 units sold. He emphasised the strong growth of Tata's SUV portfolio, bolstered by successful product introductions and the company's multi-powertrain strategy. Notably, CNG vehicle sales saw a remarkable 77% increase, with over 1,20,000 units sold in 2024. Tata Motors' SUV volumes grew by 19%, with Tata Punch emerging as the highest-selling car model in India in CY24, with over 2,00,000 units sold.

The scrip rose as much as 2.08% to Rs 764.80 apiece. It pared gains to trade 0.30% higher at Rs 751.50 apiece, as of 9:43 a.m. This compares to a 0.38% advance in the NSE Nifty 50 Index.

It has fallen 4.19% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 43.2.

Out of 38 analysts tracking the company, 22 maintain a 'buy' rating, nine recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 27.4%