Auto Sector Revs Up: Q3 Results and Tata Steel’s Robust Growth


January 8, 2023

New Delhi, India

Q3 Results Season

The Q3 results are in, and the automotive sector is revving up with notable successes, particularly in two-wheeler and passenger vehicle sales. Additionally, Tata Steel has posted robust growth, contributing to the positive momentum in the industry.

Auto Sector Q3 Performance: Two-Wheelers and Passenger Vehicles Take the Lead

In the ever-evolving landscape of the automotive industry, the Q3 results have brought promising news. Two-wheeler manufacturers and passenger vehicle makers are set to lead the earnings growth for auto producers. The festive season and December’s wedding spree have propelled sales, especially for two-wheelers, which have stood out with a remarkable 20% YoY rise. Passenger vehicle sales are also expected to grow by 12% YoY, painting a positive picture for the sector.

Commercial Vehicle Challenges and Resilience: Navigating Muted Sales

While commercial vehicle sales faced some challenges, including a temporary decrease in freight demand and post-festive season discount reductions, the overall economic growth outlook remains strong. Analysts believe that freight demand and rates are likely to see regular improvements, maintaining a robust outlook for commercial vehicle sales in the future.

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Tata Steel’s Stalwart Performance in Q3: A Steely Resolve

Shifting gears, Tata Steel has delivered a commendable Q3 performance, reporting a 6% quarterly and YoY increase in crude steel production in its India unit. Record deliveries of 4.88 million tonnes, driven by a domestic surge of 10% YoY, showcase the sustained demand for steel in the Indian market. The ‘Automotive & Special Products’ segment achieved record-breaking sales, overcoming a slight dip in vehicle production. Furthermore, Tata Steel’s ‘Branded Products & Retail’ segment maintained stability with an 11% YoY increase in quarterly deliveries.

International Dynamics: Tata Steel Netherlands and UK

While Tata Steel Netherlands reported quarterly growth in liquid steel production and deliveries, a YoY decline was attributed to the relining of one of the blast furnaces. Tata Steel UK faced challenges with a slight decrease in liquid steel production and deliveries, influenced by operational issues and subdued demand dynamics.

Conclusion: Navigating Challenges, Accelerating Growth

In conclusion, the automotive sector’s Q3 results triumphs, especially in two-wheeler and passenger vehicle sales, underscore the industry’s resilience. Tata Steel’s robust growth adds strength to the overall outlook. Despite challenges in commercial vehicle sales and international variations, the sector remains on track, navigating challenges and accelerating growth.

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