Strong December sales accelerates Tata Motors

Tata Motors rose 1.38% to Rs 942.70 after its vehicle sales rose 37% in December 2006 to 48,792 units from 35,598 units a year earlier.The stock came off its high of Rs 959.45 struck in early trade. 2.51 lakh shares changed hands in the counter on BSE.

Tata Motors’ commercial vehicles sales rose 50% in December 2006 to 28,179 units from 18,730 units, while sales of passenger vehicles rose 27% to 16,515 units. Exports rose 7% to 4,098 units.

The stock witnessed a steady rally in the past few days, as buying interest continued for the counter. From Rs 820.50 on 12 December, the scrip had surged 13.27% to Rs 929.90 by 02 January 2007.

As per reports, Tata Motors’s Rs 1-lakh car is expected to roll out in mid-2008. The company is confident of starting work on the Singur project before the turn of the year. The Rs 1-lakh car that will roll out from the new facility would be the most fuel-efficient car on the Indian roads. The car has been designed keeping in mind the economic consideration of the targeted customers — youngsters and even college-goers — and will ensure higher fuel efficiency.