Tata Motors’ stock at nearly two-month high after selling more cars than Hyundai in December

• Shares of Tata Motors surged almost 4% on Monday as the automaker has now become the second largest car seller in India.
• Tata Motors has surpassed Hyundai in terms of sales growth in December.
• It is also the highest ever monthly sales for the Mumbai-based car manufacturer in December 2021.

Tata Motors’ shares are on a high on the first day of trading this year, with its share price rising as much as 4% on excitement of the company achieving the tag of the ‘second largest car maker in the country’ beating Hyundai.

The Mumbai-based company has surpassed Hyundai, who was the second largest auto seller until now, in terms of car sales in December.

With the likes of Nexon, Tiago, Tigor and Harrier and several others, the automaker has recorded the highest ever monthly sales in December.
Note: CVs are commercial vehicles and PVs are passenger vehicles.

However, the South Korean car maker Hyundai is still ahead of Tata Motors if we add the sales of both Hyundai and Kia, which is also owned by Hyundai.

The car maker managed to sell a higher number of cars despite witnessing a shortfall in production due to the ongoing semiconductor crisis.

“The ever-increasing demand for Nexon EV and Tigor EV as well as progressive revival of the EV [electric vehicles] fleet segment were instrumental in driving this steep growth,” said Shailesh Chandra, president of passenger vehicles business unit at Tata Motors in an exchange filing.

Good demand on the newly launched Tata Punch also helped the company boost its overall sales.

“The overwhelming market response to Tata Punch launched in October 2021 is further boosting demand for the company’s “New Forever” range of cars and SUVs [sports utility vehicles],” added Chandra.

Not to forget, the company’s booming electric vehicle business, which is adding to the excitement around electric cars. The company recorded a new sales peak of 5,592 units of electric vehicles in the third quarter of FY22, which is a growth of 345% year-on-year.

However, the excitement around the rising sales may not remain long as the company admits it is cautious as the semiconductor shortage continues along with rising covid cases. “Going forward, we expect the situation to remain fluid as the semiconductor shortage continues, instances of COVID begin to rise and underlying demand continues to remain under pressure,” said Girish Wagh, executive director at Tata Motors in an exchange filing.

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