Tata Motors reported a 5% year-on-year (YoY) drop in Q4 FY25 sales, primarily due to weak commercial vehicle (CV) demand and a sharp decline in electric vehicle (EV) sales. While passenger vehicle (PV) sales remained stable, the overall performance reflects shifting trends in the Indian automotive market.
Tata Motors Q4 FY25 Sales Overview
- Total Q4 FY25 Sales: 2,52,642 units (vs. 2,65,090 units in Q4 FY24, down 5%)
- March 2025 Sales: 90,500 units, nearly flat compared to 90,882 units in March 2024
- Key Factors Impacting Sales: Commercial Vehicle (CV) slowdown, Decline in EV demand, Stable but mixed trends in passenger vehicles
March 2025 Sales Breakdown
| Segment | March 2025 Sales | March 2024 Sales | YoY Change |
|---|---|---|---|
| Passenger Vehicles (PV) | 51,872 units | 50,110 units | +3% |
| Commercial Vehicles (CV) | 41,122 units | 42,372 units | -3% |
| Electric Vehicles (EVs) | 5,353 units | 6,738 units | -21% |
While passenger vehicles saw slight growth, commercial and electric vehicle sales dropped, affecting overall performance.
Passenger Vehicles: Moderate Growth with Strong SUV Demand
Tata Motors’ passenger vehicle (PV) sales saw mixed results, with SUVs continuing to dominate:
- March 2025 Domestic PV Sales: 51,616 units (up 3% YoY)
- Q4 FY25 Domestic PV Sales: 1,46,127 units (down 6% YoY)
- SUVs accounted for ~55% of total PV sales, showing sustained demand for the segment
Export Performance
- PV International Business (IB) Sales (Q4 FY25): 872 units (up 36% from 641 in Q4 FY24)
Commercial Vehicles: Demand Continues to Decline
The commercial vehicle (CV) segment remained under pressure, contributing to the overall sales dip:
- March 2025 Domestic CV Sales: 38,884 units (down 4% YoY)
- Q4 FY25 Domestic CV Sales: 99,764 units (down 5% YoY)
- Total CV sales, including exports: 1,05,643 units (down 3% YoY)
Bright Spot: CV Exports
- Q4 FY25 CV Export Sales: 5,879 units (up 30% from 4,517 in Q4 FY24)
Electric Vehicles: Significant Decline in Sales
The EV segment saw a steep drop, affecting Tata Motors’ overall passenger vehicle growth:
- March 2025 EV Sales: 5,353 units (down 21% YoY)
- Q4 FY25 EV Sales: 15,936 units (down 23% YoY)
Despite an expanding EV ecosystem, demand slowed, reflecting shifting consumer preferences and potential pricing challenges.
Management Commentary: Outlook for FY25
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd., provided insights into the company’s strategy moving forward:
“Passenger vehicle sales are expected to reach 4.3 million units in FY25, reflecting modest 2% growth. SUVs remain the preferred choice, contributing ~55% of total sales. While CNG vehicles saw a 35% increase in demand, the EV segment is evolving, with new players strengthening the ecosystem and increasing customer options.”
Conclusion
Tata Motors’ Q4 FY25 sales reflect evolving market dynamics, with SUVs and CNG vehicles showing resilience, while EVs and CVs face challenges. The company’s future growth will depend on stabilizing commercial vehicle demand and strengthening its EV portfolio to align with consumer preferences and industry trends.