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Tata Steel shares are in limelight, vehicle sales remain strong

Tata Steel India sales decline, automotive segment remains strong

Tata Steel shares are in limelight, vehicle sales remain strong

Shares of Tata Steel Ltd were in the limelight after Fitch Ratings upgraded its export rating (IDR) from 'BB+' to 'BBB-' and kept its outlook at 'stable', issued by Fitch Ratings on Tuesday morning. Fitch Ratings also upgraded Tata Steel's arm ABJA Investment's $1 billion rating, maturing in July next year, from 'BB+' to 'BBB-'. Notes are under Tata Steel warranty.

Tata Steel reported in September that sales of its Indian operations fell 2% year-on-year to 4.82 million tonnes in the quarter.

Automotive segment deliveries nevertheless hit a record high in the September quarter as Tata started receiving approvals from automotive OEMs for steel from its newly commissioned Kalinganagar cold-rolled steel plant. The company also stated that the crude steel production of its Indian operations increased by 4% annually to 4.99 million tons.

Including international markets, Tata's electric vehicle sales reached 6,050 units, up 57 percent compared to 3,864 units in the same month last year. For this reason, Motors Passenger Tools Ltd. and Tata Passenger Electric Mobility Ltd. Passenger vehicle sales remained strong in the financial year, driven by new launches and pre-holiday sales, said Shailesh Chandra, Managing Director.

Additionally, as per Chandra's remarks, Tata Motors completed sales of 1,38,939 cars and SUVs in three months in the second quarter of fiscal 2024. This figure was approximately 2.7 percent below the second quarter of fiscal 2023, the quarter with the highest data ever. Moreover, according to Chandra, the situation is positive because the EV (electric vehicle) business continues its strong momentum and has recorded a growth of approximately 55 percent on an annual basis.

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