Source: BW Businessworld

According to the latest filing by the company with the exchange, sales plummeted month-on-month from 90,500 units in March 2025. Tata Motors witnessed a steep decline of 6% as compared to the previous year in the sales of overall vehicles for April 2025, with total domestic and overseas dispatches reaching 72,753 units from 77,521 units in April 2024.

Passenger Vehicles Show Subdued Growth

Overall sales of passenger vehicles (PV) including electric vehicles (EVs) stood at 45,532 units, representing a decline of 5% over last year. Total domestic PV sales were 45,199 units-denoting a year-on-year dip of 6% while exports rose to 333 units vis-a-vis a mere 100 units a year ago.

An uncompromising trend continued for EV sales, descending 16% from the previous year’s 5,318; sequentially, this segment did recover somewhat in the run-up, from 4,710 units in March, but continued to grapple with some headwinds-there is less subsidy, and competition is getting livelier in the market now.

Underperformance in the Segment of Commercial Vehicles:

Sales of commercial vehicles (CVs) suffered a setback and totaled 27,221 units- a dip of 8% over April 2024. Domestic CV sales fell by 10% amounting to 25,764 units with the highest 23% decline coming from the category small commercial vehicle and pickup. Heavy commercial vehicle trucks also saw a drop of 8%.

Internationally, the sales of commercial vehicles grew by 43 per cent year-on-year to touch 1,457 units, which reflects increasing demand in the export markets. One of the potential factors that could have influenced sales at the domestic level is such recent price increases in commercial vehicles that took effect from April and were aimed at countering rising input costs.

Broader Industry Trends

The slowdown in Tata Motors’ performance reflects the general weakness prevailing in the automotive sector in India. Low demand for small cars continues, due to the issues of affordability and decreased post-pandemic demand; truck manufacturers from India are facing challenges at home and pressure abroad. Reports state that the U.S. and the EU have been asking India to lower high automobile import tariffs as part of trade discussions; this act could potentially reshape the competition further.  

Strategic Moves Ahead

To unlock value and improve operational efficiency, Tata Motors plans to demerge into two listed entities, one for commercial vehicles, and the other for passenger and electric vehicles. Irrespective of the headwinds presently encountered, the company continues to pursue innovation and long-term sustainability.

Disclaimer

These opinions and suggestions in this article are only those of individual analysts. It is highly recommended to consult with a financial consultant before taking any investment decisions.