Tata Motors shares fall nearly 4% on declining CV sales
Shares of Tata Motors Limited on Tuesday fell 3.9% as investors were worried on its declining commercial vehicles (CV) market share.
The stock touched a low of INR 459.50 on BSE and fell as much as 4%.
The scrip lost 3.58% to close at INR 460.90 on BSE. Tata Motors DVR shares fell 2.81% to Rs279.95. India’s benchmark Sensex index fell 0.38% to 31,190.56 points.
On 5 June, the declining market share of medium and heavy duty truck and bus business at India’s largest auto maker Tata Motors has attracted the attention of its board.
In the past couple of years, the leader in high-tonnage trucks and buses has lost much ground to rival Ashok Leyland Limited. In 2016-17, Tata Motors’ share of the medium and heavy duty commercial vehicles (MHCV) segment, including buses, fell to 49.2% from 51.9% a year ago.
The fall was led by a decline in market share of heavy duty trucks to 53% in fiscal 2017 from 58% in fiscal 2015.
In May, Tata Motors MHCV truck sales fell 40%, while overall CV sales dropped 13% to 23,606 units from a year ago.
Ravindra Pisharody, executive director, commercial vehicle business at Tata Motors, blamed the decline on external factors such as the November note ban and the ban on selling BS-III vehicles from 1 April.
On Monday, Pisharody, who was also head of the CV business at Tata Motors, stepped down after a decade with the company, citing personal reasons. Pisharody also quit as director of the company and associated companies.
In a separate filing, Tata Motors said Satish Borwankar, executive director, quality, has been appointed as chief operating officer of the company and his directorship has been extended for 2 years from July 2017
Tag Keyword: Tata Motors , Commercial Vehicles , Truck , Bus Business , MHCV Segment