Shares of Tata Motors Limited (TML) turned bullish on Monday, ending its continous five sessions bloodbath, on the announcement of the company’s subsidiary entering into a definitive agreement with Delhi Transport Corporation (DTC) for operating 1500 units of electric buses in the city. The stock rose to as much as Rs 390.70 apiece, up 3.63% from last day’s closing price.
CV Mobility Solutions Ltd., a wholly-owned subsidiary of TML, will supply, operate and maintain 1500 units of 12-meter low-floor air-conditioned electric buses for 12 years. The Tata Starbus EV offers a superior design and best-in-class features for a sustainable and comfortable commute.
In a move to improve the air quality in the city and promote environmentally friendly transportation options, DTC said it is their largest order to date for electric buses.
Shilpa Shinde, IAS, managing director, of Delhi Transport Corporation said, “We are pleased to have signed an agreement for the largest order of 1500 electric buses in Delhi. This is a significant step towards embracing electric mobility in the capital city. The induction of zero-emission, noise-free buses will greatly help in improving the city’s air quality. The new buses will also immensely benefit the commuters with its ultra-modern features and comfortable seating.”
To date, Tata Motors has delivered over 730 electric buses across several cities in India, which together have clocked more than 55 million kilometers, with an uptime of over 95%, the company said.
Asim Kumar Mukhopadhyay, the chairman of TML CV Mobility Solutions, said, “It is indeed a historic occasion for us as we sign a definitive agreement for the country’s largest electric bus order. Our relationship with DTC, which has stood strong for over a decade, is based on the foundation of mutual trust and cooperation, and this order will further strengthen it. We are confident that the electric buses will provide sustainable, safe, and comfortable public transportation to the commuters of Delhi.”
Tata Motors is a leader in global automobile manufacturers of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. It tops India’s commercial vehicles segment and stands amongst the top three players in the passenger vehicles market.
TATA Motors’ vehicles operate in the UK, South Korea, Thailand, South Africa, and Indonesia and market in Africa, the Middle East, South & South East Asia, Australia, South America, Russia, and other CIS countries.
In the second quarter of FY23, the company posted a consolidated net loss of Rs 944.61 crore, narrowing from Rs 4,441.57 crore in Q2 FY22.
Net sales rose 30.5% to Rs 78,846.92 crore in Q2 FY23 from Rs 60,435.92 crore in Q2 FY22.