Tata Motors Reports Decline in Sales for Commercial and Passenger Vehicles in Q2 FY25

Mumbai (Maharashtra) [India], October 1: Tata Motors Limited announced a 19% year-on-year (YoY) drop in sales for its commercial vehicle (CV) segment and a 6% YoY decrease in passenger vehicle (PV) sales for the second quarter of FY 2024-25. The company sold a total of 2,15,034 vehicles, marking a 12% decline from the 2,43,024 units sold during the same period last year. This decline was due to underperformance in both the CV and PV segments.

In the domestic market, Tata Motors sold 69,694 units in September 2024, a 15% decrease from September 2023. For Q2 FY25, total domestic sales were 2,09,861 units, down 11% from 2,37,128 units in Q2 FY24. The CV segment faced a challenging quarter, with total CV sales dropping to 84,281 units in Q2 FY25, compared to 1,04,085 units in the same period last year. Domestic CV sales for September 2024 fell 23% to 28,631 units compared to September 2023.

The heavy commercial vehicle (HCV) segment was particularly affected, with a 25% YoY decline, selling 22,904 units in Q2 FY25. Factors such as a slowdown in infrastructure projects, reduced mining activity, and heavy monsoons contributed to this sharp drop. Sales of intermediate and light commercial vehicles (ILMCVs) also saw an 11% YoY decrease, recording 14,693 units for the quarter. The small commercial vehicle (SCV) and pickup segment reported a 25% decline, with sales totaling 31,399 units in Q2 FY25. However, the passenger commercial vehicle business showed resilience, growing 3% YoY to 10,935 units due to strong demand.

Girish Wagh, Executive Director at Tata Motors Ltd., stated, “Slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilization due to heavy rains resulted in the HCV segment recording a 25% YoY decline in Q2 FY25 and the ILMCV segment registering an 11% decline.” He added, “The resilient demand in the passenger commercial vehicles business saw it register a 3% increase in Q2 FY25 over Q2 FY24. SCVPU volumes declined by 25% YoY, and we expect a gradual improvement as we press on with initiatives to address challenges in first-time user financing.”

The passenger vehicle segment, including electric vehicles (EVs), saw a 6% YoY decline in sales during Q2 FY25, with 1,30,753 units sold compared to 1,38,939 units in the same quarter last year. In September 2024 alone, domestic PV sales were down 8%, with 41,063 units sold, reflecting a slowdown in consumer demand. EV sales faced a 16% YoY decline, recording 15,642 units for the quarter, impacted by the expiration of registration and road tax waivers in key states. The fleet EV market also suffered due to the lapse of the FAME II scheme and the non-inclusion of fleet vehicles in the PM-eDRIVE initiative.

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd., said, “The PV industry in Q2 FY25 saw more than a 5% decline in retails (Vahan registrations) compared to Q2 FY24 driven by slow consumer demand and seasonal factors. In contrast, industry offtake was significantly higher than registrations in anticipation of a strong start to the festive season, resulting in a continued buildup of channel stock.” He added, “In addition, Electric Vehicle sales in the personal segment were affected by the lapse of registration and road tax waivers in key states. Fleet EV sales continued to remain impacted due to the lapse of FAME II and non-inclusion of the fleet segment in the PM-eDRIVE scheme.”