Tata Motors Share Price hits new all-time high with 5% surge in Dec sales

Tata Motors shares continue their impressive run, marking a fifth consecutive session of gains by rising 1.5% to touch a new lifetime high of ₹804 on 2 January. This surge follows the automaker's report of a 5% year-on-year increase in total sales for December. The stock has seen a remarkable 13% jump in the past month, reaching new all-time highs, driven by the company's robust growth prospects.

Sales Breakdown & Management Insight

In December 2023, Tata Motors reported a 4% increase in total domestic sales, reaching 76,138 units compared to 72,997 units in the same month of the previous year. Passenger Vehicle (PV) sales, including electric vehicles, surged by 9%, totaling 43,470 units in December 2023, up from 40,043 units in December 2022.

Tata Motors also reported a 29% increase in total electric PV sales, reaching 5,006 units in December 2023 compared to 3,868 units in the same month of the previous year. This reflects the growing demand for electric vehicles in the market.

Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, Shailesh Chandra, highlighted that the company achieved its highest-ever sales of around 5.53 lakh units in CY23, marking the third consecutive year of growth. He attributed this success to the commanding position in the compact SUV segment and robust growth in hatches.

Looking ahead, Chandra expressed optimism, stating that the company plans to continue its growth trend with multiple new products, including a new nameplate scheduled for launch in 2024. The company anticipates improved demand in the March quarter across various segments of the Commercial Vehicle (CV) industry, driven by government initiatives on infrastructure development and a positive economic growth outlook.

Market Performance

Tata Motors stands out as the sole Nifty 50 stock to have doubled its price in 2023, concluding the year near its peak. Analysts are bullish on the stock, listing it among the top picks in the auto sector. Company's strong outlook for its JLR business, promising prospects of its electric vehicles, and the increasing demand for SUVs, fueled by rising disposable incomes, contribute to the positive sentiment.

Final Words

Tata Motors' recent surge in share prices is substantiated by strong sales figures, particularly in the PV and electric vehicle segments. The company's strategic outlook, including upcoming product launches, positions it favorably for continued growth in the coming quarters.