Tata Sales September 2024 Hit a 21-Month Low for Tata Motors
It’s a decline in passenger vehicle sales for Tata Motors in September 2024. Domestic sales fell to 41,031 units, marking an 8.36 percent decrease compared to September 2023, when sales stood at 44,809 units. This represents the lowest figure since December 2022. Month-on-month sales dropped by 6.98 percent from August 2024’s 44,142 units, highlighting ongoing challenges in the domestic market.
In addition to domestic figures, Tata Motors experienced a significant reduction in its small export volumes. September 2024 saw only 250 passenger vehicles exported, a sharp decline of 50.79 percent compared to the 508 units exported in the same month of the previous year.
Tata Motors’ EV Sales Take a Hit
Electric vehicle (EV) sales showed a downturn. In September 2024, Tata Motors sold 4,680 EVs, a 22.64 percent drop from the 6,050 units sold in September 2023. The company’s EV segment, a growing segment, has faced notable decline. However, Tata Motors continues to position itself as a key player in the electric mobility market.
Performance of Tata Motors in the third quarter of FY24 illustrates a downward trend. Domestic sales for Q3 FY24 amounted to 1,29,930 units, a 5.81 percent decrease compared to Q3 FY23. Meanwhile, export sales fell by 16.78 percent, with 823 units exported in Q3 FY24, down from 989 units in the same period last year.
Total PV Sales Fall for Q2 FY25
In the electric vehicle segment, Q3 FY24 sales also dropped by 15.97 percent, with 15,642 units sold compared to 18,615 units in Q3 FY23. Total passenger vehicle sales for Q2 FY25 amounted to 1,30,753 units, reflecting a 6 percent decline compared to the same period last year. These figures suggest that Tata Motors’ passenger vehicle segment grappled with fluctuating demand and market uncertainties.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd. said, “The PV industry in Q2 FY25 saw more than 5% 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. 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.”
Is Policy Dependence a Weak Spot?
Anticipating strong festive season demand while coping with sluggish consumer sentiment in Q2 is a tall ask. Slow consumer demand might not be purely seasonal—economic factors, shifting consumer preferences, or inflation could be influencing buyers. What then would be the deeper plan to stimulate demand beyond waiting for cyclical boosts, for eg, festive season.
For EV sales, the lapse of tax waivers in key states was a factor. What would be an ideal approach to reduce reliance on fluctuating government policies? In the fleet EV segment, dependence on schemes like FAME II raises concerns about resilience. Does this reliance indicate a market vulnerability?
