Shares of Tata Motors Ltd surged more than 2.5 percent in early trade on Tuesday. Tata Motors stock price opened at Rs 433.90 and hit the day's high at Rs 437.45. The gains in the Tata Group auto firm stock also helped the sectoral gauge, Nifty Auto, to rise over 2.5 percent as well.
In the last year, shares of the auto firm have gained over 47 percent as the firm's market share rose more than 12 percent in FY22, catapulting it to the third spot among India's top car sellers - behind Maruti (43.3 percent) and Hyundai (15.68 percent).
In a car market where customer preference is increasingly shifting towards sports utility vehicles (SUVs), Tata Motors' Nexon now regularly features in the top 10 bestsellers' list. Not just Nexon, other models such as Punch, Tiago, Altroz, and Safari are also reportedly not available for spot delivery and have long waiting periods, indicating huge customer demand for them.
The investor sentiment is buoyed as Tata Motors electric vehicle (EV) subsidiary Tata Passenger Electric Mobility is preparing to roll out a new model. In the latest tweet, the company announced its new EV is set for a global debut on April 29.
ICICI Direct in a recent report said that "Tata Motors is leading the electrification charge domestically (market share in excess of 70 percent) and has already indicated doubling the EV sales count in FY23E vs. FY22 (19,106 units). This order win bodes well for the company and will help in realising its sales target. The entire order amounts to around Rs 500 crore in value terms and is likely to be executed by the newly created subsidiary in this domain."
Additionally, Tata Motors and Bengaluru-based Lithium Urban Technologies have announced a partnership to deploy 5000 XPRES T electric sedans (a variant of Tata Motor's Tigor EV), across the country. India’s largest electric car maker, Tata Motors will commence deliveries in phases and will complete the deployment by next year. Lithium Urban Technologies reportedly has a current fleet strength of 400 electric vehicles.
—With inputs from CNBC-TV18's Sonia Shenoy
First Published: Apr 26, 2022 1:33 PM IST