Tata Motors revvs up

Tata Motors rose almost 7% during the opening bell session to Rs.428.25 and along with the Tata Motors DVR, remains among the top gainers on the BSE.

Two reasons for this bullishness on the counter. Firstly, the company’s sales number for September’17 were very encouraging and the hope is that with Diwali round the corner, October too will deliver very good numbers.

It reported a sharp 25% (YoY) rise in monthly sales for Oct at 53,965 units. The company stated that the sales rose on account of strong ramp-up in production, growing demand for new product launches and higher customer uptick owing to peak festive season buying trends across segments. Additionally, the sales were boosted by strong growth in e-commerce segment sales and growing demand under Swachh Bharat drive.

The other very good news is that it has received a Rs.1120 crore for supply of 10,000 of its electric vehicle, from PSU, Energy Efficiency Services (EESL). This to  replace petrol and diesel cars used by the government and its departments as part of a plan to cut demand for fossil fuels and reduce carbon emissions. 

Tata Motors will supply this in two phases – the first batch of 500 vehicles will be dispatched by Novembr and rest 9500 in second phase. All 10,000 have to be delivered within nine months period from the date of issue of letter of intent.

The company won this order through the global tender floated by EESL; it quoted the lowest price of Rs 10.16 lakh, exclusive of GST.