Tata Motors Achieves Modest Sales Growth In First Quarter FY25

Published: Monday, July 1, 2024, 18:20 [IST]

Tata Motors Limited reported sales of 229,891 vehicles in the domestic and international markets for Q1 2024-25, a slight increase from the 226,245 units sold during Q1 FY 2023-24.

Domestic sales reached 225,719 units, up 2% from the previous year's Q1 figure of 222,345 units. However, June 2024 saw a decline in total domestic sales by 8%, with 74,147 units sold compared to 80,383 in June 2023.

Tata Motors Commercial Vehicles Sales Performance

In Q1 FY25, Tata Motors' commercial vehicle (CV) domestic sales rose by approximately 7% to reach 87,615 units. The medium and heavy commercial vehicle (M&HCV) segment led this growth with a ~10% increase in sales volumes compared to Q1 FY24.

The CV passenger business also experienced robust post-pandemic recovery, with school and staff transportation segments growing by 39% during the quarter. However, small and light commercial vehicle sales declined by ~6% in Q1 FY25 due to financing challenges faced by first-time users.

According to Mr. Girish Wagh, Executive Director of Tata Motors Ltd., factors such as a healthy monsoon forecast, policy continuity expectations, and government focus on infrastructure-related projects are expected to improve demand for commercial vehicles.

Tata Motors Passenger Vehicles Sales Performance

Tata Motors' passenger vehicle (PV) domestic sales (including electric vehicles) reached 138,104 units in Q1 FY25, a slight decrease of 1% from the previous year's Q1 figure of 140,120 units. Electric vehicle sales also declined by 14%, with only 16,579 units sold in Q1 FY25 compared to the previous year's figure of 19,346 units.

Mr. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., stated that despite low retails in May and June due to general elections and heatwaves across India, strong enquiry pipelines and the upcoming festive season are expected to boost demand for passenger vehicles.

Looking ahead, healthy monsoon forecasts, policy continuity expectations, and the upcoming festive season are expected to positively impact both commercial and passenger vehicle sales for Tata Motors.