Share price of Tata Motors Limited TTM rallied 0.3% to $34.56 on Jul 1 after the automaker reported a 6% increase in total sales of its commercial and passenger vehicles, including exports, to 40,870 units in Jun 2015 from 38,574 units in Jun 2014. The year-over-year improvement was driven by better sales of Medium and Heavy Commercial Vehicle (M&HCV) and passenger cars, along with higher exports. The automaker’s domestic sales of commercial and passenger vehicles totaled 35,823 units in the month, 3% higher than the year-ago level.
In the passenger vehicles business, Tata Motors’ sales for Jun 2015 increased 30% to 10,281 vehicles from 7,911 vehicles in Jun 2014. The upside was driven by better performance by the car segment, driven by the launches of Zest and Bolt, and the new GenX Nano. Sales of all Tata Motors passenger vehicles in Jun 2015 surged 44% to 8,516 units, while sales of utility vehicles declined 11% to 1,765 units.
In the commercial vehicles business, Tata Motors’ sales for Jun 2015 in the domestic market went down 5% to 25,542 vehicles due to a decline in industry demand for Light & Small Commercial Vehicles. Sales at the Light & Small Commercial Vehicle business deteriorated 18% to 14,092 vehicles, while M&HCV sales improved 18% to 11,450 vehicles.
Tata Motors’ export sales for the month of June surged 32% to 5,047 vehicles from 3,814 vehicles sold a year ago. Tata Motors is one of the leading automotive manufacturers in India. The company has operations in the U.K., South Korea, Thailand, South Africa and Indonesia.
Currently, Tata Motors carries a Zacks Rank #3 (Hold). Better-ranked stocks in the auto industry include Delphi Automotive PLC DLPH, Autoliv, Inc. ALV and PACCAR Inc. PCAR, all carrying a Zacks Rank #2 (Buy).
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