Tata Motors september sales slip 15%; stock down 12% within days!

Tata Motors sold 4,680 units in September, in the electric vehicle (EV) segment, marking a significant drop from 6,050 units in the same month last year.

Shares of Tata Motors Limited continue their rough patch after slipping over 4 percent to Rs 925 on October 3,  fuelled by a rather weak September where sales saw a steep decline. To be sure, the counter tanked a massive 12 percent in September.

Tata Motors reported domestic sales of 69,694 units in September 2024, down from 82,023 in the same month last year. On a month-on-month basis, however, the company saw a slight 0.4 percent uptick in sales. The automaker attributed the decline to subdued consumer demand and seasonal factors, while slower infrastructure project execution and reduced mining activity hit the heavy commercial vehicle (HCV) segment.

In the electric vehicle (EV) segment, Tata Motors sold 4,680 units in September, marking a significant drop from 6,050 units in the same month last year. This reflects a 23 percent year-on-year decrease and a 21 percent dip from August 2024. The company cited the expiration of registration and road tax waivers in key states, along with the end of FAME II benefits, which particularly affected EV fleet sales.

Girish Waugh, Executive Director at Tata Motors, noted that the company’s commercial vehicle domestic sales for Q2 FY25 stood at 79,931 units, a 19 percent decline compared to Q2 FY24. While September 2024 sales were up 11 percent from August, Waugh highlighted the impact of heavy rains, which caused a 25 percent year-on-year drop in HCV sales during the quarter, along with an 11 percent decline in the ILMCV segment.

Despite these challenges, the passenger commercial vehicles business saw a 3 percent year-on-year increase in Q2 FY25. Looking ahead to Q3, Wagh expects demand to gradually recover with the festive season approaching, infrastructure spending rising, and weather conditions improving.

At about 1:05 pm, shares of the company were trading at Rs 931, higher by 3.5 percent from the last close on the NSE. Tata Motors shares have slipped 7 percent this week.