Tata Motors shares fell 2 percent in early trade on September 2, bogged down by a fall in the company's monthly auto sales for August. At 09.45 am, shares of Tata Motors were trading at Rs 1,098.35 on the NSE. Despite the fall however, shares of Tata Motors are still sitting on over 50 percent gains made in the past month.
Sales for the automobile major fell 8 percent on year in August to 71,693 units as against 78,010 units sold in the same month last fiscal.
Not just that, sales of commercial vehicles (CV) as well as passenger vehicles (PV) were down in August. Total CV sales dropped 15 percent to 27,207 units in August, down from 32,077 units last year, while PV sales fell by 3 percent on year to 44,486 units.
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Going ahead, brokerage firm Motilal Oswal Financial Services projects a near 4 percent increase in Medium and Heavy Commercial Vehicles (M&HCV) volumes for FY25, resulting in a residual growth rate of 4 percent or a monthly run rate of approximately 17,400 units. For Light Commercial Vehicles (LCVs), MOFSL expects a flattish trend in FY25, translating to a residual growth of 5 percent or a run rate of 19,300 units.
As for PVs, the firm forecasted a 6 percent growth in FY25, meaning a residual growth rate of 13 percent or a monthly run rate of 48,900 units.
Overall, the brokerage anticipates volumes to remain flat for Tata Motors in FY25 with a 2.5 percent residual growth rate and a monthly run rate of around 85,600 units.
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