Tata Motors' Stock Surges After Sharp Decline, Strong Global Sales Boost Confidence

Mumbai: Tata Motors shares are back in the spotlight as they saw a notable 5 per cent increase today, reaching an intraday high of Rs 606.40 per share. This comes after a tough period where the stock fell sharply, including a 13 per cent drop on Monday, closing at Rs 579.85.

This year alone, Tata Motors' share price has declined by 25 per cent, and over the past year, it has faced a significant drop of 41 per cent. Despite these setbacks, the recent surge has caught the attention of investors looking for opportunities in the current volatile market.

Company Performance and Sales Insights

On Monday, Tata Motors reported mixed results for the fiscal year 2024-25. The company’s sister concern showed stability in retail sales, but challenges remain, particularly in the Chinese market where performance was weak.

Tata Motors reported a slight decline in wholesale sales by 0.1 per cent, totaling 400,898 units. Retail sales also dipped by 0.7 per cent, reaching 428,854 units. However, the company highlighted strong cash flow from its Jaguar Land Rover (JLR) segment, supported by the "Reimagine" strategy, which has helped meet its targets.

Regionally, JLR’s sales showed positive growth

North America: Sales grew by 14.4 per cent

Europe: Sales increased by 10.9 per cent

United Kingdom: Sales remained stable

While, the Chinese market saw a dramatic decline with wholesale sales down by 29.4 per cent. Other international markets also experienced a drop of 8.1 per cent.

Strong Demand for Premium Models

In the fourth quarter, Tata Motors reported retail sales of around 180,232 units, marking a 1.8 per cent increase compared to the third quarter of FY 2024-25. However, this was a 5.1 per cent drop compared to the same quarter in FY 2023-24.

The company’s premium models, such as the Range Rover, Range Rover Sport, and Defender, continue to perform well. These models contributed 66.3 per cent of sales in Q4 and 67.6 per cent over the full year, indicating stable demand in the luxury segment.

For the entire fiscal year, JLR sold 400,898 units in wholesale and 400,028 units in retail, maintaining stability compared to the previous year.

Investor Outlook and Future Prospects

The recent surge in Tata Motors’ shares reflects growing investor confidence, especially after the company’s strong performance in key international markets. Despite challenges in China, the positive growth in Europe and North America offers hope for recovery.

With stable demand for its premium models and strategic initiatives like "Reimagine," Tata Motors is well-positioned to attract both short-term and long-term investors.