Shares of Tata Motors tumbled as much as 2.8% on Monday to INR 686.05 on the BSE after the automaker reported a 7% year-on-year decline in total vehicle sales for January 2025.
Tata Motors registered total vehicle sales of 80,304 units in January 2025, compared to 86,125 units in January 2024. The company noted that its domestic sales fell to 78,159 units, a 7% decline from 84,276 units sold in the same period last year.
Breaking down the numbers, Tata’s passenger vehicle sales saw a significant dip of 11%, falling to 48,316 units from 54,033 units in January 2024. The automaker also reported a 25% drop in electric vehicle sales, with only 5,240 units sold in January 2025, down from 6,979 units during the same month last year.
The dip in sales extended to the commercial vehicles segment, which saw total sales of 31,988 units, marginally down from 32,092 units in January 2024.
Despite the decline in sales, Tata Motors remains focused on strengthening its position in the competitive landscape of India’s auto sector. The company has pushed forward with plans to secure a local supply of electric vehicle batteries, announcing an investment of USD 1.5 billion to establish a battery gigafactory in Gujarat.
The facility, which will produce lithium-ion cells starting in 2026, is expected to provide Tata Motors with a reliable supply of batteries for its expanding EV portfolio. The giga-factory is projected to reach full production capacity by 2028, giving the company a competitive advantage over other automakers that depend on external suppliers for EV components.
Tata Motors had reported a consolidated total income of INR 115,365 crore for the third quarter ended December 2024, reflecting an 11.99% increase from the previous quarter and a 2.93% rise from the same period last year. The company posted a net profit of INR 5,616 crore for the third quarter.
Despite the short-term sales setbacks, the company is banking on its long-term strategy to improve its financial performance and position itself as a key player in the electric vehicle space.
