Tata Motors , one of India's leading automotive manufacturers, faced a challenging August as its shares declined and domestic sales figures showed mixed results. The company also reported IT issues affecting its Jaguar Land Rover (JLR) subsidiary, while advocating for maintaining current EV tax rates and proposing changes for gasoline cars.

Stock Performance

Tata Motors shares experienced a marginal decline, falling nearly 1% in recent trading. The stock was trading at Rs 689.55, down 0.09%. Over the past 12 months, Tata Motors has seen a significant decline of 36.76% in its stock value.

August Sales Figures

The company's August sales report revealed a mixed performance across different segments:

Notably, Tata Motors reported a 7% decline in domestic passenger vehicle dispatches, dropping to 41,001 units from 44,142 units in the same month last year. However, the company saw growth in other areas:

• Commercial vehicle sales rose by 6% to 27,481 units.
• Total wholesale sales increased by 2% to 73,178 units.
• Electric vehicle sales showed remarkable growth, with a 44% increase year-over-year, reaching 8,540 units.

Jaguar Land Rover IT Issues

Tata Motors disclosed that its Jaguar Land Rover unit is currently addressing global IT issues affecting business operations. The company stated in its LODR filing:

"We are working at pace to resolve global IT issues impacting our business. We will provide an update as appropriate in due course."

The extent and impact of these IT issues on JLR's operations remain unclear at this time.

Advocacy for EV Tax Rates

Tata Motors has emphasized the importance of maintaining the current 5% GST rate on electric vehicles to sustain sales growth in the EV segment. The company believes this tax rate is crucial for the continued expansion of the electric vehicle market in India.

Additionally, Tata Motors proposed implementing tax cuts on certain gasoline cars to make them more competitive with electric vehicle prices. This suggestion aims to balance the automotive market and provide consumers with a range of affordable options across different fuel types.

Analyst Outlook

Despite the recent challenges, analyst sentiment on Tata Motors remains largely positive. Out of 34 analysts covering the company:

• 18 maintain buy ratings
• 10 hold ratings
• 6 sell recommendations

As Tata Motors navigates through these challenges, investors and industry observers will be keenly watching how the company addresses the decline in domestic passenger vehicle sales, resolves the IT issues at JLR, and continues to advocate for favorable tax policies in the automotive sector. The strong performance in the electric vehicle segment and the growth in commercial vehicle sales could be potential bright spots for the company moving forward.

Tata Motors , one of India's leading automotive manufacturers, has reported robust sales figures for August, surpassing analyst expectations and demonstrating resilience in a competitive market. Additionally, the company has disclosed an IT security incident at its UK subsidiary Jaguar Land Rover (JLR).

Sales Performance

Tata Motors registered total sales of 73,178 units in August, marking a notable increase from 71,693 units in the same month of the previous year. This performance exceeded analyst estimates of 71,010 units, showcasing the company's strong market position and operational efficiency.

Commercial Vehicle Segment

The commercial vehicle (CV) segment emerged as a significant contributor to Tata Motors' growth:

The CV segment showed impressive growth, with total CV sales reaching 29,863 units, a 10% year-on-year increase. Notably, the ILMCV (Intermediate and Light Medium Commercial Vehicle) trucks category saw a substantial 15% growth.

Passenger Vehicle Segment

While the passenger vehicle (PV) segment experienced a slight decline, it still maintained strong numbers:

Despite a 3% overall decrease in PV sales, Tata Motors achieved a remarkable milestone in its electric vehicle (EV) segment. The company recorded its highest-ever monthly EV sales, with 8,540 units sold, representing a staggering 44% year-on-year growth.

International Business

Tata Motors' international business showed significant growth, particularly in the passenger vehicle segment:

• CV International Business: 2,382 units (77% growth)
• PV International Business: 2,314 units (573% growth)

These figures indicate Tata Motors' expanding global footprint and increasing acceptance in international markets.

Domestic Market Performance

In the domestic market, Tata Motors sold 68,482 units, compared to 70,006 units in the same month of the previous year, representing a slight 2% decrease. However, this was offset by strong performance in other segments and international markets.

IT Security Incident at JLR

In a separate development, Tata Motors has notified stock exchanges about a cybersecurity breach affecting its luxury automotive division, Jaguar Land Rover (JLR) in the UK. The company disclosed an IT security incident at this subsidiary, highlighting the ongoing challenges faced by automotive companies in maintaining robust cybersecurity measures.

Tata Motors' August sales figures demonstrate the company's ability to navigate market challenges and capitalize on growth opportunities, particularly in the commercial vehicle and electric vehicle segments. The substantial growth in EV sales reflects increasing consumer confidence in electric mobility and Tata Motors' strategic focus on sustainable transportation solutions. Meanwhile, the reported IT security incident at JLR underscores the importance of cybersecurity in the automotive industry's increasingly digital landscape.