In Tata Motors share news, company stocks jumped after the car manufacturer revealed sales figures for December 2020. The company registered 84 percent growth in the domestic passenger vehicles segment even with tepid demand in the pandemic-hit market. According to reports, the passenger vehicle segment of the company witnessed a steady growth during last year. Tata Motors had sold 53,430 units in the domestic market, clocking 21 percent rise in sales from 44,254 units in December 2019. In the domestic passenger vehicle segment, the company sold 23,545 units against 12,785 units in December 2019. The commercial vehicle segment, however, declined 4 percent to 32,869 units in December 2020 against 34,082 units in the same month a year ago.
Pandemic Had Been A Difficult Time For Indian Automobile Sector
The Indian automobile segment suffered from production disruption and lack of demand when COVID-19 cases started to rise in India. The onset of the pandemic impacted both production and revenue. Experts estimated a decline in overall revenue by USD1.5 -2.0 billion per month across the industry.
Several months of non-production had dealt a serious blow on sector performance and disrupted the supply chain. Apart from that, there was also a demand-side challenge as the purchasing power of the consumers dwindled.
It would possibly take several months for the sector to make a recovery. Most experts predict a U-shaped recovery path for the industry instead of V-shaped one as the pandemic is still raging. However, top manufacturers have registered growth during Q3 of FY2021, have reported y-o-y growth against 2019.
Beside Tata Motors, other prominent players like Maruti and Mahindra and Mahindra have also reported marginal growth with sales volume improving from last year. Tata Motors registered 84 percent growth from 2019, though the commercial vehicle (CV) segment stood at 32,869 units, at 4 percent decline from 34,082 units in December 2019.
Girish Wagh, President of Tata Motor’s CV segment, said, strong demand during Q3 for commercial vehicles (CVs) in sectors like road construction, mining and e-commerce. The company is working towards streamlining the supply chain, especially electronic components, for facilitating uninterrupted production when demand returns to the market.
With the report of strong sales, Tata motor stocks rallied in the market. It registered intraday high and low of Rs 193.00 and Rs 190.55 respectively. At the closing of the day, stocks traded at Rs 196.75, up 1.35 percent from its last traded price.