Tata Motors shares jump as it beats Hyundai to become second largest carmaker
Tata Motors, which became India's second largest carmaker by toppling Hyundai Motor after decades, saw its shares rise sharply on Monday. The jump in shares came after December sales reports showed Tata Motors register an increase of nearly 50 per cent compared to December in the previous year.
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Tata Motors shares gained nearly 4 per cent on Monday. The stock jumped 3.59 per cent to ₹499.70 on the BSE. On the NSE, it gained 3.60 per cent to ₹499.80.
Tata Motors sold as many as 35,299 units of passenger vehicles in December 2021. The carmaker had sold a total of 23,545 units in the same month a year ago.
Tata Motors said the overall passenger vehicle sales stood at 99,002 units in the third quarter compared to 68,806 units sold during the same period in the previous year. It is a sharp increase of nearly 44 per cent.
Shailesh Chandra, President of the Passenger Vehicles Business Unit of Tata Motors, said, "Tata Motors PV business growth journey continued and set several new milestones during the quarter despite witnessing a shortfall in production due to the ongoing semi-conductor crisis."
Tata Motors has hived off and transferred its entire passenger vehicle undertaking to Tata Motors Passenger Vehicles Limited earlier last week. The carmaker had earlier said it wanted to turn its domestic PV business unit into a separate entity, and seek a strategic partnership in order to help the unit secure its long-term viability.
One of the significant aspects of Tata Motors' rise as a carmaker has been the performance of its electric vehicles. Armed with only two - Nexon EV and Tigor EV - Tata Motors holds majority stake in the four-wheeler electric vehicle segment in India. Chandra said, “EV sales witnessed a new peak of 5,592 units in Q3 FY22 (growth of 345 per cent versus Q3 FY21)."
Sales of Tata Motors' electric vehicles touched 10,000 units in the first nine months of the ongoing fiscal. Last month, Tata Motors crossed 2,000 monthly EV sales landmark for the first time with 2,255 units sold.