Shares of Tata Motors rose as much as three percent in trade on Monday after the auto major reported a strong sales growth in the domestic and international market.

At 9:40 am, shares of Tata Motors were up 1.7 percent at Rs 339.10.

Tata Motors’ sales in the domestic and international market for Q2 FY22, came in at 1,71,270 vehicles, which is a 55 percent jump from 1,10,345 vehicles during Q2 FY21.

The company’s total domestic sales in the quarter ended September rose 52 percent on-year whereas the total commercial vehicles segment witnessed a 57 percent on-year jump in sales.

Further, Tata Motors’ total passenger vehicle sales grew 53 percent in the September quarter.

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“Post the 2nd COVID wave, markets are witnessing gradual demand recovery across most segments led by M&HCVs with improving fleet utilisation levels, a higher number of road construction projects awarded and improving cement consumption,” said Girish Wagh, Executive Director, Tata Motors.

Semiconductor shortage continues to impact the auto industry globally, Wagh added. “The impact of a supply shortage due to restrictions in East Asia continued in September, leading to moderation of production and offtake volumes,” he said.

Talking about passenger vehicles, Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors said, “Tata Motors PV business posted nearly a decade high quarterly sales of 83,933 units, registering a strong growth of 53% versus Q2FY21. This growth has come on the back of demand recovery in the industry post the Covid second wave and a strong response to its “New Forever” range of cars and SUVs”.

Chandra also added that the demand for cars and SUVs is expected to remain strong in the forthcoming festive season but the supply situation for electronic components may continue to witness challenging times.

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