Tata Motors, Maruti Suzuki, Eicher Motors, Ashok Leyland shares decline after Dec sales

Shares of Tata Motors opened higher by 1.7% to hit a lifetime high of ₹804 apiece on the BSE, a day after the automobile manufacturer reported a 4% increase in the company’s domestic sales to 76,138 units in December against 72,997 units in the same period last year. The share price of the maker of Nexon.ev and Harrier, however, declined as much as 1.4% to hit an intraday low of ₹790.50. This is in line with the broader BSE Sensex, which was trading 500 points or 0.69% lower at 71,771.51.  

Meanwhile, the share price of Maruti Suzuki, the country’s largest automobile manufacturer, dropped by as much as 1.10% to hit an intraday low of ₹10,168 apiece on the BSE, after the company reported a 1.28% decline in sales in December to 1,37,551 units against 1,39,347 units in the same period last year. The share price of Eicher Motors plunged as much as 3.8% to hit an intraday low of ₹3,881.90 after the company’s two-wheeler sales declined by 7% in December.

The share price of Mahindra & Mahindra, TVS Motor and Ashok Leyland plunged by as much as 2.89%, 3.3% and 3.8% to hit an intraday low of ₹1,654.20, ₹1,952.55 and ₹179.65, respectively, on the BSE is in line with the broader BSE Sensex.

In December, the domestic passenger vehicle sales crossed the 4 million units mark led by robust sports utility vehicle (SUV) sales. "Coming off a high base, the industry recorded a single-digit growth overall with the key highlight of this moderate rise being the sharp growth registered in emission-friendly product categories. Both EV and CNG segments posted growth greater than 90% and 25% respectively, signalling a growing preference for green and smart technologies by Indian customers," says Shailesh Chandra, MD, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd.

In the PV segment, Tata Motors recorded an 8% jump in domestic sales to 43,675 units against 40,407 units in the same period led by electric vehicles. The company’s EV sales surged 29% to 5,006 units against 3,868 units in the corresponding period of the previous year.

Meanwhile, the PV sales by Maruti Suzuki declined by 6.4% to 1,04,778 units against 1,12,010 units in the same period last year. The passenger vehicle sales of Mahindra and Mahindra surged by 24% to 35,174 units in December as against 28,445 units in the same period last year.

In the commercial vehicle segment, the sales of Tata Motors surged by 1% to 34,180 units as against 33,949 units in the same period last year. For the October to December period, the company’s sales stood at 96,526 units as against 95,914 units in the same period last year.

The commercial vehicle sales of Eicher Motors surged by 11.1% to 8,026 units as against 7,221 units in the same period last year. Ashok Leyland reported a 10.4% decline in sales to 15,323 units as against 17,112 units in the same period last year.

In the two-wheeler segment, the share price of Eicher Motors plunged by 7% to 63,387 units as against 68,400 units in the same period last year. For models with 350 cc engine capacity, the sales of the Royal Enfield-maker dropped by 10% to 55,401 units as against 61,223 units in the same period last year. For models exceeding 350cc engine capacity, the sales of the two-wheeler manufacturer surged by 11% to 7,986 units as against 7,177 units in the same period last year.

Meanwhile, the sales of TVS Motors surged by 27% to 290,064 units in December this year as against 227,666 units in the same period last year. The company’s two-wheeler sales witnessed a growth of 33% to 214,988 units as against 161,369 units in December last year. The company's motorcycle sales registered a growth of 19% from 124,705 units in December 2022 to 148,049 units in December 2023. The company’s scooter registered a growth of 34% with sales increasing from 76,766 units in December last year to 103,167 units in December 2023.

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