Tata Motors shares hit 52-week high — here's what's driving the Tata group auto major's stock

Tata Motors zoomed to a 52-week high on Monday amid strength in the overall market, with the Nifty scaling an all-time high. Over the weekend, the Tata Group auto giant reported a one per cent increase in total domestic sales to 80,383 vehicles. Tata Motors said it has successfully upgraded the entire vehicle portfolio, during the second phase of the BS6 transition, "beyond the mandatory requirements, to offer more features, value-adds and benefits to customers".

Tata Motors reported better-than-expected sales for June 2023. | Image: Reuters

Tata Motors zoomed to a 52-week high on Monday amid strength in the overall market, with the Nifty scaling an all-time high, after the Tata group auto major announced an increase in prices and staged a stronger-than-expected sales performance in July 2023. The Tata Motors stock — traded on the exchanges BSE and NSE with the symbol TATAMOTORS — gained by as much as Rs 7 or 1.2 per cent to Rs 602.5 apiece on BSE, surpassing its existing 52-week peak of Rs 599 hit last week.

Tata Motors announced an increase averaging 0.6 per cent in the prices of its passenger vehicles across models and variants. The new prices will take effect on July 17, the company said. ALSO READ: Tata Nexon, Harrier, Punch, Safari to cost more now

Over the weekend, the Tata Group auto giant reported a one per cent increase in total domestic sales to 80,383 vehicles in June compared with the corresponding period a year ago. The company, however, finished the quarter with a decline of 1.5 per cent in total domestic sales to 2,22,345 vehicles, according to a regulatory filing.

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Tata Motors sold a total of 47,235 passenger vehicles (including electric vehicles) in the domestic market last month, an increase of 4.5 per cent.

Its total commercial vehicle sales fell 7.9 per cent on a year-on-year basis to 34,314 units in June. Sales of commercial vehicles in the domestic market decreased 3.7 per cent to 33,148 units.

Category	June 2023	June 2022
HCV trucks	9,625	8,058
ILMCV trucks	4,723	5,851
Passenger carriers	4,810	3,868
SCV cargo and pickup	13,990	16,632

According to Zee Business research, Tata Motors' domestic PV sales were estimated at 45,000 vehicles and total CV sales at 31,500 vehicles.

Tata Motors has successfully upgraded the entire vehicle portfolio, during the second phase of the BS6 transition, "beyond the mandatory requirements, to offer more features, value-adds and benefits to customers", its Executive Director Girish Wagh said.

"M&HCV growth was driven by the strong infrastructure push by the Government, as well as increased activity in e-commerce, construction, and replacement demand in auto logistics and petroleum sector. During the quarter, we started deliveries of Electric Buses, in accordance with the CESL tender mandate and expect to ramp up supplies in the coming months," he said.

"Looking ahead, the promising monsoon and continuing infrastructure thrust by the Government auger well for the CV industry, even as it faces the headwinds of high interest rates, fuel prices and inflation," Wagh added.

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