Tata Motors Reports Continued Decline in February 2025 Sales

Tata Motors Limited, one of India's leading automotive manufacturers, reported a significant decline in its February 2025 sales, with total sales dropping 8.2% year-on-year to 79,344 units compared to 86,406 units in February 2024.

The company's domestic sales showed a steeper decline of 9%, falling to 77,232 units from 84,834 units in the same month last year, according to a press release issued today.

Passenger Vehicle Segment Faces Headwinds

The passenger vehicle (PV) segment, including electric vehicles (EVs), witnessed a 9% year-on-year decline in February, with total sales of 46,811 units compared to 51,321 units in February 2024. Domestic PV sales fell to 46,435 units from 51,267 units in the corresponding month last year.

Notably, the company's electric vehicle sales continued their downward trend, dropping 23% to 5,343 units in February 2025 from 6,923 units in February 2024. This marks the third consecutive month of declining EV sales for Tata Motors, which has been a pioneer in India's electric vehicle market with models like the Nexon EV, Punch EV, and Curvv EV.

Commercial Vehicles Show Mixed Performance

The commercial vehicle (CV) segment also experienced an overall decline, with total sales decreasing by 7% to 32,533 units from 35,085 units in February 2024. Domestic CV sales fell by 8% to 30,797 units.

Within the commercial vehicle category, performance was mixed:Heavy Commercial Vehicle (HCV) trucks saw a modest 2% decline to 9,892 units from 10,091 units, while Intermediate and Light Medium Commercial Vehicle (ILMCV) trucks bucked the trend with an 11% growth, reaching 5,652 units from 5,083 units. Passenger carriers declined by 7% to 4,355 units, and the Small Commercial Vehicles (SCV) cargo and pickup segment witnessed the steepest fall of 20% to 10,898 units.

Continuing a Challenging Trend

The February results continue a challenging period for Tata Motors, which has been experiencing fluctuating sales performance over the past few months.

In January 2025, the company reported a 7% decline in domestic sales at 78,159 units, with passenger vehicle sales dropping 10% and EV sales falling sharply by 25% to 5,240 units.

December 2024 had offered a brief respite with a modest 1% increase in total sales, reaching 78,164 units. The passenger vehicle segment had shown resilience with a 1.7% growth, bolstered by an 11% increase in EV sales, which had reached 5,562 units.

November 2024 had seen a marginal improvement with a 0.8% increase in total sales to 74,753 units, driven by a 2% rise in passenger vehicle sales. Popular models like the Nexon and Punch had contributed to this growth with increases of 3% and 7% respectively.

Market Outlook

The continued decline in February sales, particularly in the passenger vehicle and EV segments, raises concerns about evolving consumer preferences and competitive pressures. The steep 20% drop in small commercial vehicles also points to potential challenges in the last-mile delivery and small business transportation sectors.

On a positive note, the 11% growth in ILMCV trucks and the 14% increase in international business for commercial vehicles suggest some resilience in specific market segments that could provide growth opportunities for the company going forward.

Industry analysts will be watching closely to see if Tata Motors can reverse this downward trend in the coming months, particularly in its once-thriving EV business, which has seen consistent decline since December's brief uptick.