Tata Motors Limited has reported a 19% year-on-year (YoY) decline in sales for its commercial vehicle (CV) segment and a 6% dip in passenger vehicle (PV) sales for the second quarter of FY 2024-25. The company sold a total of 215,034 vehicles, reflecting a 12% decrease compared to 243,024 units sold during the same period last year.
Domestic Sales Decline
In the domestic market, Tata Motors recorded 69,694 units sold in September 2024, down 15% from September 2023. For Q2 FY25, total domestic sales stood at 209,861 units, an 11% decline from 237,128 units in Q2 FY24. The commercial vehicle segment faced significant challenges, with total CV sales dropping to 84,281 units in Q2 FY25 from 104,085 units in the same period last year.
Segment Performance and Market Challenges
Domestic CV sales for September 2024 fell 23% to 28,631 units, indicating a tough market environment. The heavy commercial vehicle (HCV) segment was particularly hard hit, with a 25% YoY decline, selling 22,904 units in Q2 FY25. Factors contributing to this downturn include a slowdown in infrastructure projects, reduced mining activity, and heavy monsoon rains.
Intermediate and light commercial vehicles (ILMCVs) also saw an 11% YoY decrease, with sales totaling 14,693 units. The small commercial vehicle (SCV) and pickup segment reported a 25% decline, totaling 31,399 units in Q2 FY25. However, the passenger commercial vehicle business showed resilience, with a 3% YoY increase to 10,935 units, driven by strong demand.
Electric Vehicle Sales Decline
The passenger vehicle segment, including electric vehicles (EVs), experienced a 6% YoY decline in sales during Q2 FY25, with 130,753 units sold compared to 138,939 units in the same quarter last year. In September 2024, domestic PV sales were down 8%, with 41,063 units sold, reflecting a slowdown in consumer demand.
EV sales faced a 16% YoY decline, totaling 15,642 units for the quarter, impacted by the expiration of registration and road tax waivers in key states. The fleet EV market also struggled due to the lapse of the FAME II scheme and the exclusion of fleet vehicles from the PM-eDRIVE initiative.
Girish Wagh, Executive Director at Tata Motors, stated, “The 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.” Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd., noted that the PV industry saw more than 5% decline in retails (Vahan registrations) compared to Q2 FY24, driven by slow consumer demand and seasonal factors.
