Tata Motors Limited reported total sales of 70,187 units in May 2025, representing an 8.6% drop compared to 76,766 units sold in May 2024. The decline reflects sustained challenges in both the passenger vehicle (PV) and commercial vehicle (CV) segments, with rising competition, shifting market dynamics, and subsidy rollbacks impacting demand.
The company’s domestic sales fell 10% to 67,429 units in May 2025, down from 75,173 units a year earlier. This trend echoes April 2025 results, where Tata Motors saw a 6.2% year-on-year dip in total sales to 72,753 units. Combined, the two months show a decline of over 13,000 units compared to 2024 figures.
In May, commercial vehicle sales declined 5% year-on-year to 28,147 units. The domestic CV segment dropped 9% to 25,872 units, with the small commercial vehicle (SCV) category showing the steepest fall — a 20% decline to 9,064 units.
Heavy commercial vehicles (HCVs) were also impacted, falling 10% to 7,106 units. However, intermediate, light, and medium commercial vehicle (ILMCV) trucks provided a silver lining, posting 11% growth to 4,954 units, showing some market resilience in this sub-segment.
Tata’s passenger vehicle sales slipped 11% to 42,040 units in May 2025, compared to 47,075 units in May 2024. Domestic PV sales stood at 41,557 units, continuing a declining trend through the first half of 2025.
On a positive note, electric vehicle (EV) sales grew 2% to 5,685 units, showcasing slight recovery. Yet, this marginal growth was insufficient to offset the broader passenger vehicle slump.
Tata Motors, once dominant in India’s EV space, is facing rapid erosion of market share. The company's EV share dropped from 70% in FY2024 to 53% in FY2025. In April 2025, its monthly EV share plummeted to 36%, down from 61% a year ago, signaling growing pressure from rivals.
MG Motor India has rapidly expanded its EV footprint, mainly due to the success of its Windsor EV, which uses a battery-as-a-service model. This approach helped MG capture 28% of April 2025’s EV market, up from 16% in April 2024.
Meanwhile, Mahindra’s electric SUV lineup, including the BE 6 and XEV 9e, has also gained momentum. The company’s EV market share surged to 15.8% in March 2025, marking one of the sharpest gains in the Indian electric vehicle market.
Despite domestic challenges, Tata Motors recorded a strong performance in exports. International CV sales surged 87% to 2,275 units in May, providing a positive offset to declining domestic figures.
The medium and heavy commercial vehicle (MHCV) category, including trucks and buses, also showed relative stability with 12,406 domestic units sold, compared to 12,987 units last year.
The phasing out of FAME II subsidies has impacted Tata’s fleet EV sales, especially in the commercial sector. Additionally, growing competition from both domestic players like Mahindra and global entrants such as MG Motor has intensified pricing pressure and forced incumbents to rethink strategies.
Tata Motors continues to offer a robust EV portfolio including the Nexon EV, Tigor EV, Tiago EV, Punch EV, and Curvv EV. These models helped the company build its early lead, but sustaining it will require pricing innovation and faster tech upgrades to meet evolving consumer expectations.
Tata Motors now faces the challenge of defending its shrinking EV market share, especially as rivals roll out new, tech-forward, and cost-effective models. Future success will depend on its ability to differentiate products, introduce competitive pricing models, and respond swiftly to changing consumer preferences.