Tata Motors Limited reported a 19 per cent year-on-year (YoY) decline in sales for its commercial vehicle (CV) segment, while passenger vehicle (PV) sales saw a 6 per cent YoY decrease for the second quarter of FY 2024-25.
The company reported total sales of 2,15,034 vehicles, reflecting a 12 per cent decline compared to 2,43,024 units sold during the same period last year. The drop in sales was attributed to underperformance in both the commercial vehicle and passenger vehicle segments.
In the domestic market, Tata Motors registered 69,694 units sold in September 2024, down by 15 per cent from September 2023. For Q2 FY25, the company's total domestic sales stood at 2,09,861 units, an 11 per cent decline from the 2,37,128 units sold in Q2 FY24.
The company's commercial vehicle segment experienced a challenging quarter, with total CV sales dropping to 84,281 units in Q2 FY25, compared to 1,04,085 units in the same period last year.
Domestic CV sales for September 2024 fell 23 per cent to 28,631 units, compared to September 2023, reflecting a difficult market environment. The heavy commercial vehicle (HCV) segment was particularly affected, registering a 25 per cent YoY decline, with 22,904 units sold in Q2 FY25.
A slowdown in infrastructure projects, reduced mining activity, and heavy monsoons contributed to this sharp drop. Similarly, sales of intermediate and light commercial vehicles (ILMCVs) also saw an 11 per cent YoY decrease, recording 14,693 units for the quarter.
The small commercial vehicle (SCV) and pickup segment reported a 25 per cent decline, with sales totalling 31,399 units in Q2 FY25. In contrast, the passenger commercial vehicle business exhibited resilience, growing 3 per cent YoY to 10,935 units, supported by strong demand.
Girish Wagh, Executive Director at Tata Motors Ltd., stated, "Slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilization due to heavy rains resulted in the HCV segment record a 25 per cent YoY decline in Q2 FY25 and the ILMCV segment register a 11 per cent decline."
He added, "The resilient demand in the passenger commercial vehicles business saw it register a 3 per cent increase in Q2 FY25 over Q2 FY24. SCVPU volumes decline by 25 per cent YoY, and we expect a gradual improvement as we press on with initiatives to address challenges in first-time user financing."
The passenger vehicle segment, including electric vehicles (EVs), saw a 6 per cent YoY decline in sales during Q2 FY25, with 1,30,753 units sold compared to 1,38,939 units in the same quarter last year. In September 2024 alone, domestic PV sales were down 8 per cent, with 41,063 units sold, reflecting a slowdown in consumer demand.
Electric vehicle sales faced a 16 per cent YoY decline, recording 15,642 units for the quarter, impacted by the expiration of registration and road tax waivers in key states. The fleet EV market also suffered due to the lapse of the FAME II scheme and the non-inclusion of fleet vehicles in the PM-eDrive initiative.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd., said, "The PV industry in Q2 FY25 saw more than 5 per cent decline in retails (Vahan registrations) compared to Q2 FY24 driven by slow consumer demand and seasonal factors. In contrast, industry offtake was significantly higher than registrations in anticipation of a strong start to the festive season, resulting in a continued buildup of channel stock."
He added, "In addition, Electric Vehicle sales in personal segment was affected by the lapse of registration and road tax waivers in key states. Fleet EV sales continued to remain impacted due to lapse of FAME II and non-inclusion of the fleet segment in PM-eDRIVE scheme." (ANI)
