Tata Motors Shares Gain 1% Following 2% Price Hike Announcement
Shares of Tata Motors rose nearly 1% after the automaker announced a 2% price hike for its commercial vehicles to manage rising input costs.
- The price adjustment is aimed at balancing increased production expenses and will vary depending on specific models and variants, the company clarified in a stock exchange filing.
- After the news, the company’s shares were trading higher at ₹661.90, an increase of 0.98% on the National Stock Exchange (NSE), before closing at ₹660.10, marking a 0.70% gain.
Recent Stock Performance
Despite today’s slight uptick, Tata Motors has seen a declining trend, with its share price under pressure amid recent market conditions.
- Investor sentiment has weakened recently, pushing the stock down nearly 4% over the past month, influenced by rising market volatility.
- Over the past six months, since September 17, 2024, the company’s stock has lost 32.3% due to broader market downturns and subdued sector performance.
- Challenges in the automobile and IT sectors have affected investor confidence, impacting stocks such as Tata Elxsi and LTIMindtree, which have also touched 52-week lows.
Sales Performance in February
Tata Motors’ commercial vehicle segment reported a noticeable 7% decline year-on-year in February 2025, with total sales dipping to 32,533 units compared to 34,890 units sold last year.
- Total domestic vehicle sales also declined, falling 9% to 77,232 units from 84,834 units in February 2024.
- Specifically, commercial vehicle sales in the domestic market dropped by a significant 7%, reflecting broader challenges in demand.
- However, medium and heavy commercial vehicles (MHCVs) managed slight growth, recording 32,533 units compared to 32,533 units sold in February of the previous year.
Strategic Expansion: Tata Motors Returns to Sri Lanka
Recently, Tata Motors announced its return to the Sri Lankan market, introducing its latest range of vehicles, including advanced electric models.
- This strategic re-entry highlights Tata Motors’ aim to strengthen its presence in international markets.
- Launching a comprehensive range, including electric vehicles, signals the automaker’s commitment to sustainable and future-oriented mobility solutions.
Mixed December Quarter Performance
In the December 2024 quarter, Tata Motors reported a 22% year-on-year decline in consolidated net profit, amounting to ₹5,451 crore.
- Although profits fell sharply compared to the same quarter the previous year, the performance represented a significant sequential improvement of 22% from the prior quarter (Q2 FY25).
- The company’s revenue from operations rose modestly by 2.7%, reaching ₹113,575 crore against the previous year’s ₹109,799 crore, supported by stable overseas revenues from Jaguar Land Rover (JLR).
Segment-wise performance revealed mixed outcomes:
- The commercial vehicle (CV) segment showed resilience with marginal revenue growth, though overall segment demand remains under pressure.
- Despite a drop in domestic CV volumes, stable pricing partially offset volume-related declines.
- EBITDA margins remained relatively stable, supported by cost rationalization measures undertaken by the management.
- Passenger vehicle (PV) segment revenues slipped by 4.3%, totaling ₹12,354 crore, indicating weaker domestic demand.
- Despite declining revenues, the segment’s EBITDA margin improved by 120 basis points to 7.8%, driven by cost management and better pricing strategies.
Tata Motors remains focused on navigating ongoing challenges, including rising input costs and fluctuating demand, by adapting its product strategies and expanding its global footprint.
