Tata Motors Reports Flat March Sales, Sees Decline in FY25 Performance

Tata Motors Limited, one of India's leading automotive manufacturers, reported flat sales for March 2025, with total domestic sales of 90,500 units compared to 90,822 units in the same month last year, representing a marginal decline of 0.3%.

The company's overall performance for the financial year 2024-25 (FY25) was less encouraging, with total domestic sales declining by 4% to 912,155 units from 949,015 units in FY24.

Passenger Vehicle Segment Shows Modest Growth in March

The passenger vehicle (PV) segment, which includes electric vehicles, showed resilience in March with a 3% year-on-year growth, reaching 51,872 units compared to 50,297 units in March 2024. However, this modest growth follows a significant 9% decline reported in February.

Despite the positive March performance, Tata Motors' PV division closed FY25 with a 3% decline in sales at 556,263 units, down from 573,495 units in FY24.

Electric vehicle sales continued their downward trajectory, plunging 21% to 5,353 units in March 2025 from 6,738 units in the same month last year. For the full fiscal year, EV sales fell 13% to 64,276 units from 73,833 units in FY24.

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., stated that despite challenges, "Punch emerged as the top choice for private buyers to become India's No. 1 SUV in FY25."

Commercial Vehicles Face Pressure

The commercial vehicle (CV) segment recorded a 3% decline in March, with total sales falling to 41,122 units from 42,262 units in the same month last year. For the full fiscal year, CV sales dropped 5% to 376,903 units from 395,845 units in FY24.

Within the CV segment, the results were mixed for March:
- Heavy Commercial Vehicle (HCV) trucks grew by 1% to 12,856 units
- Intermediate and Light Medium Commercial Vehicle (ILMCV) trucks increased by 6% to 7,181 units
- Passenger carriers rose by 4% to 6,088 units
- Small Commercial Vehicle (SCV) cargo and pickup segment saw a sharp 17% decline to 12,759 units

Girish Wagh, Executive Director at Tata Motors Ltd., noted that "FY25 ended on a positive note for Commercial Vehicles industry, post the YoY demand decline witnessed earlier."

From Ascendancy to Slowdown

The latest figures underscore a challenging period for Tata Motors, which had been on an upward trajectory about a year ago. The company has since experienced a reversal of fortunes, with consecutive months of declining sales.

February 2025 had been particularly difficult, with total sales dropping 8.2% year-on-year to 79,344 units. This followed a 7% decline in January's domestic sales and only modest improvements in December and November 2024.

Industry analysts attribute this slowdown to various factors including economic headwinds, intense competition, and changing consumer preferences. The significant drop in EV sales is especially concerning for Tata Motors, which had established itself as a pioneer in India's electric vehicle market with models like the Nexon EV, Punch EV, and Curvv EV.

Looking ahead, the company remains cautiously optimistic. "With a strategically aligned product portfolio, supported by new nameplate launches and our multi-powertrain strategy, Tata Motors is well positioned to seize market opportunities and sustain its momentum," Chandra said.