Tata Motors Rides Festive Wave with 10,000 Cars Sold on Navratri Day

New Delhi, September 23 – One of the leading car manufacturers in the country, Tata Motors, has reported strong customer interest in the festive season, with dealers selling 10,000 passenger vehicles on the first day of Navratri. The surge is attributed to the major reduction in prices of entry-level (and a few high-end) cars offered by Tata Motors following the revised tax rates. The company reported that more than 25000 enquiries have already been registered across its passenger vehicle dealership.

Stock Price Performance

Tata Motors’ stock closed at ₹701.35, up 0.73% from the previous close of ₹696.25. The stock has seen a 52-week range of ₹536.75 to ₹1,000.40, indicating strong volatility. With a market capitalization of ₹2.56 lakh crore, it trades at a relatively attractive P/E ratio of 12.12, compared to the industry P/E of 28.85, reflecting potential value. The company’s ROE of 20.39% and EPS of 57.42% highlight robust profitability, while its debt-to-equity ratio of 0.62 shows manageable leverage.

Management Commentary

According to Amit Kamat, the Chief Commercial Officer of the company, the response has been quite enthusiastic, as the company has decided to pass on the entire benefit of the GST cuts to the buyers. This, along with the festivities, has resulted in a sharp increase in enquiries, more walk-ins, and conversion has also gone up. The officer also suggested that the dealerships are working extended hours to fulfil the high consumer demand throughout the festival season.

Best-Selling Products

The company highlighted that demand was particularly strong for its popular models, the Nexon and Punch. With a robust pipeline of bookings and deliveries lined up, Tata Motors expressed confidence in setting new records this festive season.

Industrial Trends

The upbeat trend is not limited to Tata Motors. On Monday, Maruti Suzuki reported sales in the range of 30,000 units. At the same time, Hyundai Motor India recorded about 11,000 dealer billings – its best single-day performance in the last five years – as buyers flocked to showrooms under the revamped GST regime.

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