Tata Motors is expected to see a dip in its volumes in September, according to a Yes Securities research note on the auto sector.

What Happened: The brokerage said that as per its interactions with leading channel partners, it sees volume traction coming back to Nexon after recent price cuts of ₹30,000 to ₹50,000. The recently launched Curvv has been able to get new buyers, driven by unique design appeal and the shift of customers from mid sports utility vehicles (SUVs), the research firm added.

The brokerage firm said that the Tata Group company will take a massive hit in commercial vehicle volumes this September. While the volume in the passenger vehicle segment may remain flat. It expects total sales for the company to go down around 7.2% to 78,300, compared with 84,381 units sold last September.

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As per Yes Securities estimates, the company's passenger vehicle sales will come in at 45,500 units, while commercial vehicle sales will be at 32,800 units for the month. The brokerage has an “add” rating on the stock with a target price of ₹1,240.

Tata Motors’ sales had missed the street estimates last month. The auto major saw its total sales dip around 8% in August to 71,693 units, compared to 78,010 units in the same month last year. Total domestic sales dropped by 8% to 70,006 units from 76,261 units in August 2023. The numbers were lower than the 76,700 units estimate of Yes Securities.

Price Action: Tata Motors' share price was up 2.2% to trade at ₹984.80 in the late hours of trading on Thursday.

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