Domestic sales of medium and heavy commercial vehicles (MH&ICV) for June 2024 stood at 14,640 units, slightly up from 14,427 units in June 2023. In the first quarter of the fiscal year 2025 (Q1 FY25), domestic sales of these vehicles reached 40,349 units, up from 35,188 units in the same period last fiscal year. Combining domestic and international sales, MH&ICV sales for June 2024 totaled 15,224 units compared to 14,770 units in June 2023, while in Q1 FY25, they totaled 41,974 units, up from 36,577 units in Q1 FY24.
Girish Wagh, Executive Director of Tata Motors Ltd., stated, “Tata Motors Commercial Vehicles domestic sales at 87,615 units in Q1 FY25 were ~7% higher than Q1 FY24 sales. Additionally, sales in June 2024 were ~3% higher compared to May 2024.
"The M&HCV segment led the growth with ~10% rise in Q1 FY25 sales volumes versus Q1 FY24. While HCV demand held up well, market sentiment remained positive in the MCV segment with demand increasing in e-commerce, auto-aggregates, and LPG segments. The CV passenger business continues with its robust post-pandemic recovery with school and staff transportation segments growing 39% during the quarter. Sales of small and light commercial vehicles declined by ~6% in Q1 FY25 compared to Q1 FY24, primarily due to financing challenges faced by ‘first-time users’ in this category," Wagh added.
According to Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., there was a dip in passenger vehicle industry sales in May and June 2024 after an initial boost in April due to festivities in certain regions. He highlighted that Tata Motors managed to sell 138,682 cars and SUVs in Q1 FY25, showing no significant change compared to Q1 FY24, as the company aligned its wholesales with retails to control channel inventory.
"In Q1 FY25, after a boost in demand in the first half of April, due to festivities in some parts of the country, the Passenger Vehicle industry saw a decline in retails (registrations) in the months of May and June, influenced by the general elections and heat waves across the country. Tata Motors wholesales of 138,682 cars and SUVs in Q1 FY25 remained flat compared to Q1 FY24, as we readjusted our wholesales in line with retails to keep channel inventory under control."
The Electric Vehicle sector was not immune to these trends. The significant preponement of fleet sales in Q4 FY24, driven by the expiration of the FAME II subsidy in March 2024, led to a notable decline in fleet segment sales, though personal segment retails saw slight growth.
"The Electric Vehicle industry was affected by the broader industry trend and the impact of significant preponement fleet sales in Q4 FY24, due to expiry of FAME II subsidy in March 2024. Consequently, while the personal segment retails have grown slightly, there was a sharp decline witnessed in the fleet segment, which is expected to recover in the coming quarters."
Looking ahead, Chandra remains optimistic about future demand, driven by the upcoming festive season and a strong inquiry pipeline despite recent low retails. He emphasized the company’s preparedness to capitalize on demand increases, especially for its SUVs like Punch and Nexon alongside upcoming new launches.
"Going forward, we foresee the recovery of demand, as enquiries have remained strong despite low retails in the past two months. This strong enquiry pipeline, in addition to the onset of the festive season from August, augurs well for the industry. Tata Motors is fully geared up to leverage this growth opportunity on the back of strong demand for its SUV portfolio, especially Punch and Nexon, as well as new launches in the coming months.”
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