Tata Motors reports slight increase in sales over the previous year.

Tata Motors reported a marginal increase in total sales for November 2024, reflecting steady demand in the passenger vehicle (PV) segment, including electric vehicles (EVs), while the commercial vehicle (CV) segment faced challenges. The company sold 74,753 units last month, a slight rise from 74,172 units in November 2023.

Passenger Vehicle Sales

Tata Motors’ PV sales, which include its EV lineup, improved by 2% year-on-year (YoY) to 47,117 units in November 2024 compared to 46,143 units in the same period last year. Domestic PV sales were up by 2.16%, reaching 47,063 units from 46,068 units in November 2023.

EVs played a pivotal role in this growth, with sales reaching 5,202 units, marking a 9.26% YoY increase over 4,761 units in November 2023. However, on a month-on-month basis, total PV sales dropped by 2.22% compared to October 2024, when 48,131 units were sold.

Commercial Vehicle Sales

The CV segment faced a 1% YoY decline in sales, with 27,636 units sold in November 2024, compared to 28,029 units in November 2023. Domestic CV sales stood at 26,183 units, slightly lower than 26,579 units in the year-ago period.

• HCV Trucks: Sales fell 8% YoY to 7,586 units from 8,253 units.
• ILMCV Trucks: Sales remained flat at 4,374 units versus 4,285 units in November 2023.
• Passenger Carriers: Witnessed an impressive 42% YoY growth to 3,022 units, up from 2,130 units last year.
• SCV Cargo and Pick-ups: Declined by 5% to 11,201 units compared to 11,811 units in November 2023.

Exports in the CV segment were relatively flat, with 1,453 units shipped last month, a marginal increase from 1,450 units in November 2023.

Tata Motors’ Future Plans and Product Pipeline

Tata Motors is gearing up for significant launches in 2025. The updated Tata Tiago and Tigor are set to debut early next year, while the highly anticipated 2025 Tata Sierra, available in both ICE and EV versions, has been spotted undergoing testing. Additionally, the Tata Curvv, offered in both EV and ICE variants, has seen robust demand, prompting plans for more variants of this compact SUV.

Q2 FY25 Financial Highlights

In Q2 FY25, Tata Motors posted a consolidated net profit of Rs. 3,343 crore, an 11.18% YoY decline, while revenue dropped 3.5% YoY to Rs. 1,01,450 crore.

• JLR Performance: Revenue fell 5.6% to £6.5 billion, with EBIT margins dropping by 220 basis points to 5.1% due to temporary supply constraints.
• CV Revenues: Decreased by 13.9%, though EBITDA margins improved to 10.8%, supported by favorable pricing and cost-saving measures.
• PV Revenues: Declined 3.9%, with steady EBITDA margins at 6.2%.

Stock Performance

On Monday, Tata Motors shares rose by 1% to Rs. 795 on the BSE, following this sales report. Despite a 30% decline over the past three months, the stock has surged by 82% over the last two years, with a market capitalization of Rs. 2,89,638 crore.

Final Thoughts

Tata Motors continues to exhibit resilience in the passenger vehicle and EV segments, with steady growth in November 2024. However, the commercial vehicle segment faces challenges due to declining demand in key sub-segments. With an exciting lineup of upcoming models, including the Sierra and Curvv, Tata Motors aims to strengthen its position in both ICE and EV markets in the coming year.