Tata Motors and Ashok Leyland were trading higher by 3% each, recovering from their respective intra-day lows, after they reported a strong set of sales numbers in December 2017.
Tata Motors was up 3% at Rs 439, its highest level since November 10, 2017 on the BSE, after the company’s commercial and passenger vehicles domestic sales grew 52% at 54,627 units in December. The company attributed strong growth due to increasing demand for vehicles across segments, new product launches and strategic customer initiatives. It had sold 35,825 units in December 2016.
“The commercial sector has shown good recovery after the headwinds and regulatory challenges last year. The steady production ramp-up of the new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors have led the growth,” Tata Motors said in a press release.
The company recorded highest ever December sales of 14,180 units for passenger vehicles since 2012 and the retail sales for this month was also the highest in past 6 years, it added.
Ashok Leyland was too up 3% at Rs 123 on back of two-fold jump in trading volumes. A combined 16.91 million shares changed hands on the BSE and NSE till 12:27 PM;
The company reported a rise of 79% in its total sales for the month of December 2017 at 19,253 units as compared with 10,731 units sold in the same month a year-ago.
The medium and heavy commercial vehicle (M&HCV) sales grew sharply by 82% to 15,950 units as compared with 8,782 units sold in November 2016. Light commercial vehicle (LCV) sales increased 69% to 3,303 units as compared with 1,949 units sold in the same month a year-ago.