M&HCVs and ILCVs led the recovery, growing by 10 per cent and 7 per cent, respectively over Q3FY20 with higher demand in infrastructure, including road construction, mining and e-commerce segments. The offtake continued to be higher than retail to support sequential month on month growth in retail while ensuring healthy inventory levels in the pipeline, the company said in a press release. READ HERE
The passenger vehicle (PV) industry continued to grow robustly in Q3FY21, owing to pent up demand, strong festive season and shift towards personal mobility. Tata Motors
PV business has been witnessing strong response for its ‘New Forever’ range, which is being supported by the continuous ramp-up of supplies.
In Q3FY21, PV business posted a growth of 89 per cent as compared to Q3FY20, its highest ever sales in the last 33 quarters. With the growing popularity of Nexon EV, the company also posted an impressive sale in EVs with highest-ever quarterly wholesale of 1,253 units in Q3FY21 and 418 units in December 2020, it said.
"Tata Motors has taken cognizance of the increasing debt levels at the company amid deteriorating operating performance and recurring capex spend on new technologies, including electrification. It plans to reduce automotive debt to near-zero levels in the next few years (~ Rs 48,000 crore as of FY20) and be FCF positive from FY22E onwards, which, we believe, will drive value creation for its shareholders," ICICI Securities said in auto sector
update. We are positive on the company’s longer-term strategic direction (electrification and deleveraging), the brokerage added.