Company sees 12% drop in total vehicle sales, driven by commercial vehicle decline, while passenger vehicle sales adjust to consumer demand.
Mumbai – Tata Motors Limited reported total sales of 2,15,034 units in Q2 FY25, reflecting a 12% decrease compared to the same period last year when the automaker sold 2,43,024 units. The decline was observed across both commercial vehicles (CV) and passenger vehicles (PV), with specific segments impacted by economic conditions and weather-related disruptions.
Commercial Vehicles Struggle with Heavy Rains and Project Slowdowns
Tata Motors’ commercial vehicle (CV) division saw significant pressure, registering a 19% year-over-year (YoY) drop in total CV sales to 84,281 units. The heavy commercial vehicles (MH&ICV) segment was particularly hard hit, experiencing a 25% YoY decline in Q2 FY25, attributed to a slowdown in infrastructure projects, reduced mining activity, and heavy monsoon rains that disrupted fleet utilization.
In domestic sales, the company recorded 79,931 units for CVs in Q2 FY25, down from 99,016 units during the same period in FY24. However, September sales provided a glimmer of hope, showing an 11% improvement over August.
Girish Wagh, Executive Director of Tata Motors, acknowledged the challenges but remains cautiously optimistic about the future. “As the monsoon recedes and infrastructure spending ramps up, we expect demand to pick up in Q3, driven by buses, ILMCVs, and the recovery of M&HCVs,” Wagh stated. He also highlighted that the festive season could provide a much-needed boost for the sector.
Passenger Vehicles Adjust to Market Dynamics
On the passenger vehicle (PV) front, Tata Motors recorded sales of 1,30,753 units in Q2 FY25, representing a 6% YoY decline. This drop was primarily attributed to sluggish consumer demand and seasonal factors, which led to a broader market contraction of over 5%, according to Vahan registration data.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd., explained the company’s strategy in response to these conditions. “We adjusted our wholesales to reflect lower-than-expected retail sales, ensuring channel inventory remains under control,” Chandra noted. Despite these adjustments, Tata Motors remains bullish on its upcoming launches and the festive season, with strong consumer interest already shown for its latest models.
The newly launched Tata Curvv, available in petrol, diesel, and electric variants, has garnered an excellent response with robust bookings. Additionally, the Nexon.ev, featuring an extended range, has sparked significant consumer interest as the company ramps up production ahead of the festive season.
Electric Vehicles: Challenges and Opportunities
Electric vehicle (EV) sales faced headwinds in Q2 FY25, primarily due to the expiration of registration and road tax waivers in key states and the ongoing impact of the FAME II policy lapse on fleet sales. However, Tata Motors remains optimistic, with the company seeing steady fleet EV demand and growing consumer interest in its personal EV offerings.
As the company looks ahead, it is preparing for a gradual recovery in sales, particularly as the festive season approaches. “Registrations picked up toward the end of the month, which is a positive sign for the upcoming period,” Chandra added.
Outlook for Q3 FY25
With infrastructure projects expected to resume and consumer sentiment likely to improve during the festive season, Tata Motors is forecasting a gradual recovery in demand for both commercial and passenger vehicles. The company’s proactive approach to managing inventories, coupled with strong demand for new launches, positions it well for a potential rebound in Q3 FY25.
“We are optimistic about the future, with strategic interventions already in place to meet the anticipated rise in demand,” concluded Wagh and Chandra.
Domestic Sales Performance:
| Category | Sept’24 | Sept’23 | % Change | Q2 FY25 | Q2 FY24 | % Change |
| Total Domestic Sales | 69,694 | 82,023 | -15% | 2,09,861 | 2,37,128 | -11% |
Commercial Vehicles:
| Category | Sept’24 | Sept’23 | % Change | Q2 FY25 | Q2 FY24 | % Change |
| HCV Trucks | 9,295 | 12,867 | -28% | 22,904 | 30,369 | -25% |
| ILMCV Trucks | 5,387 | 6,377 | -16% | 14,693 | 16,483 | -11% |
| Passenger Carriers | 3,101 | 3,344 | -7% | 10,935 | 10,622 | 3% |
| SCV cargo and pickup | 10,848 | 14,626 | -26% | 31,399 | 41,704 | -25% |
| Total CV Domestic | 28,631 | 37,214 | -23% | 79,931 | 99,178 | -19% |
| CV IB | 1,401 | 1,850 | -24% | 4,350 | 4,907 | -11% |
| Total CV | 30,032 | 39,064 | -23% | 84,281 | 104,085 | -19% |
Passenger Vehicles:
| Category | Sept’24 | Sept’23 | % Change | Q2 FY25 | Q2 FY24 | % Change |
| Total PV Domestic (includes EV) | 41,063 | 44,809 | -8% | 129,930 | 137,950 | -6% |
| PV IB | 250 | 508 | -51% | 823 | 989 | -17% |
| Total PV (includes EV) | 41,313 | 45,317 | -9% | 130,753 | 138,939 | -6% |
| EV (IB + Domestic) | 4,680 | 6,050 | -23% | 15,642 | 18,615 | -16% |
Includes sales of Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, both subsidiaries of Tata Motors Limited.
