Tata Motors’ Sales Drop in June Due to Elections and Heat Waves
New Delhi [India], July 1: Tata Motors has reported a decline in sales for June and the April-June quarter. The company sold 43,624 units in June, including electric vehicles (EVs), marking an 8% year-on-year drop. EV sales specifically fell by 34% to 4,657 units in June.
In the April-June quarter, total passenger vehicle sales declined by 1% to 138,682 units, while EV sales dropped by 14% to 16,579 units. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., attributed the slump to general elections and heat waves across the country.
Chandra explained, “In Q1 FY25, after a boost in demand in the first half of April due to festivities in some parts of the country, the Passenger Vehicle industry saw a decline in retails (registrations) in the months of May and June, influenced by the general elections and heat waves across the country.”
The Electric Vehicle industry was also affected by the broader industry trend and the impact of significant preponement fleet sales in Q4 2023-24, due to the expiry of the FAME II subsidy in March 2024. While personal segment retails have grown slightly, there was a sharp decline in the fleet segment, which is expected to recover in the coming quarters.
“Going forward, we foresee recovery of demand, as enquiries have remained strong despite low retails in the past two months. This strong enquiry pipeline, in addition to the onset of the festive season from August, augurs well for the industry,” Chandra added.
Chandra also mentioned that Tata Motors is fully prepared to leverage this growth opportunity, thanks to strong demand for its SUV portfolio, especially Punch and Nexon, as well as new launches in the coming months.
Tata Motors Limited’s sales in the domestic and international market for Q1 2024-25 stood at 229,891 units, compared to 226,245 units during the same quarter of last year. The company expects that a healthy monsoon, policy continuity, and ongoing infrastructure projects by the government will improve demand for commercial vehicles.
