Tata Motors' sales in the domestic market witnessed a drop of 4 percent for the first time in last eight months.
Tata Motors shares gained more than 2 percent in morning on Monday despite a fall in November sales on low consumer sentiments.
It could also be a short covering or a bit of value buying after the stock lost 12 percent in the last nearly a month.
After the strong growth witnessed in the last 7 months, sales performance of the company's commercial and passenger vehicles business in the domestic market witnessed a drop of 4 percent for the first time year-on-year, the Tata Group company said in its filing.
The company sold 50,470 units in month gone by against 52,464 units sold in same period last year due to low consumer sentiments as a result of liquidity crisis in the industry, higher interest rates and rising fuel costs. The month-on-month fall in sales stood 12.5 percent.
However, the cumulative sales, i.e. for April-November period of FY19 showed a whopping 30 percent increased to 4,47,532 units compared to 3,44,137 units over last year.
Tata Motors said it would continue to focus on aggressive sales enhancement and provide better service to its customers in these challenging times.
Commercial vehicles' domestic sales declined in November 2018 by 5 percent to 33,488 units compared to same month last year.
"Small operators' profitability was impacted due to reduced freights on account of the benefits passed by large operators from the GST related credit. Overall demand post the festival period was muted," it reasoned.
The medium & heavy commercial vehicle truck segment declined by 24 percent to 9,793 units, largely impacted due to drop in cargo sales as operators postponed their purchase due to low consumer sentiments.
"November 2018 was a challenging month for the industry with muted consumer sentiment caused by liquidity crunch, non-availability of retail finance and moderate festive season," the company said. Hence, passenger vehicles domestic sales declined 1 percent to 16,982 units YoY.
Exports (from CV and PV) during the month gone by slipped 7 percent to 4,604 units against 4,927 units sold in November 2017 due to sharp TIV contraction in Bangladesh due to elections and political uncertainty in Sri Lanka.At 10:04 hours IST, the stock was quoting at Rs 174.30, up Rs 2.35, or 1.37 percent on the BSE.