Tata motors sold 56773 units in June 2018 as compared to 36836 units in same month last year showing growth of 54% YoY.
Why is this important
The commercial vehicles sales have grown by 50% as the company sold 38560 units in June 18 as compared to 25660 units in the same month last year. It is to be noted that Tata Motors is trying to regain its market share in the CV segment which was at 64.1% in FY10 but had fallen to 42.3% in Q1FY18. However from thereon the company gradually increased its market share to 47.5% by Q3FY18.
Cumulatively the CV sales in the domestic market grew by 71% to 111642 units in April to June quarter of FY19 as against 65283 units in same quarter previous financial year.
The sales in passenger vehicles also grew at a staggering rate of 63% over last year to 18213 units due to strong demand for Tiago, Tigor, Hexa and Nexon. The company’s share in passenger vehicle which was at 12.4% in FY10 also fell to levels of 4.6% in FY16 and then gradually improving to 6.2% in Q3FY18.
Impact on the stock
The news is positive for the stock of Tata motors (CMP: Rs 270, M.cap: Rs 86013 including DVR, 6.7x FY20E PE)