Tata Motors’ passenger vehicle sales, including electric vehicles (EVs), saw a decline in June and the entire quarter, as reported by the automaker on Monday.
In June, Tata Motors sold 43,624 units, which includes EVs, marking an 8% drop compared to the previous year. Specifically, EV sales plummeted by 34% year-on-year to 4,657 units.
For the April-June quarter, total passenger vehicle sales decreased by 1% to 138,682 units, while EV sales fell by 14% to 16,579 units.
The company attributed the weak sales to the general elections and heat waves across the country.
“In Q1 FY25, after a boost in demand in early April due to festivals in some parts of the country, the passenger vehicle market saw a decline in May and June, affected by general elections and heat waves,” said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.
The EV industry was also impacted by broader market trends and a significant advance in fleet sales in Q4 2023-24, due to the expiry of the FAME II subsidy in March 2024. Although personal segment sales slightly increased, the fleet segment saw a sharp decline, which is expected to recover in the coming quarters.
Chandra added, “Looking ahead, we expect demand to recover, as there are still strong inquiries despite low sales in the past two months. This strong inquiry pipeline, along with the festive season starting in August, is positive for the industry.”
He further mentioned that Tata Motors is prepared to take advantage of this growth opportunity, driven by strong demand for its SUV models, especially Punch and Nexon, and new launches in the coming months.
Tata Motors’ total sales in the domestic and international markets for Q1 2024-25 were 229,891 units, compared to 226,245 units in the same quarter last year.
The company also noted that the forecast of a healthy monsoon, expected policy continuity, and ongoing government infrastructure projects are likely to boost demand for commercial vehicles.
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