Tata Motors Faces EV Sales Decline, Yet Achieves Best Annual Wholesales

Updated: Friday, January 3, 2025, 13:05 [IST]

Tata Motors has experienced a slight dip in its overall sales for 2024, with a decrease of 0.25 percent compared to the previous year. Despite this, the company has achieved its best-ever annual wholesales, surpassing the 5 lakh milestone for the third consecutive year. The decline is attributed to a downturn in electric vehicle (EV) sales, which also fell by 0.25 percent.

Electric Vehicle Sales Performance

In 2024, Tata's EV sales reached 68,980 units, marking a small decline from the previous year's figures. The company's market share in the EV sector has decreased from 70 percent to 65 percent. This reduction is partly due to a drop in fleet volumes following the expiration of the FAME 2 subsidy in late 2024.

CNG & SUV Sales Growth

On a positive note, Tata Motors saw significant growth in its CNG vehicle sales, with over 1.2 lakh units sold in 2024—a substantial increase of 77 percent. The SUV segment also performed well, growing by 19 percent. Notably, the Punch model emerged as India's top-selling car with over 2 lakh units sold during this period.

Quarterly Sales Analysis

The first quarter of CY2024 began strongly with record sales of 53,633 passenger vehicles in January alone. However, subsequent months saw a decline in demand. Tata Motors sold 1,55,010 units in Q1 but faced decreasing numbers in Q2 and Q3 before recovering slightly in Q4 with sales of 1,39,424 units.

Market Share & Future Outlook

Tata's share of total EV sales dropped to 12.26 percent from last year's figure of 12.55 percent. Despite these challenges, Shailesh Chandra expressed optimism about future prospects: "With multiple product launches and innovations planned for CY2025," he stated confidently regarding their growth strategy.

The company remains committed to expanding its multi-powertrain strategy while introducing new products across various segments. This approach aims at maintaining competitiveness within India's evolving automotive landscape amidst fluctuating consumer preferences and regulatory changes impacting industry dynamics overall.