Tata Motors Domestic PV Shipments Fall 6%, But Still Beats Hyundai

Following Hyundai, Tata Motors also reported weak auto sales for April 2025. It showed a downward trend across both commercial and passenger vehicle segments. The company reported total sales of 72,753 units for the month, marking a 6.2% decline compared to 77,521 units in April 2024. However, Tata Motors was ahead of Hyundai in domestic PV shipments, indicating that it may trump the Korean company in retail sales for April -- the second month in a row.

Tata Motors' passenger vehicle (PV) segment, including electric vehicles, registered a 5% year-on-year decline in April 2025, with total sales of 45,532 units compared to 47,983 units in April 2024. Domestic PV sales fell 6% to 45,199 units, though international business saw remarkable growth with exports rising 233% to 333 units.

This decline follows the relatively flat performance in March 2025 and reflects the broader challenges faced throughout fiscal year 2024-25, which saw a 4% overall reduction in domestic sales.

Passenger Vehicle Division Continues to Face Headwinds

The passenger vehicle (PV) segment, including electric vehicles, registered a 5% year-on-year decline in April 2025, with total sales of 45,532 units compared to 47,983 units in April 2024. Domestic PV sales fell 6% to 45,199 units, though international business saw remarkable growth with exports rising 233% to 333 units.

This performance represents a deterioration from March 2025, when the PV segment had shown resilience with a 3% year-on-year growth, selling 51,872 units compared to 50,297 units in March 2024.

Electric vehicle sales continued their downward trend, with April figures showing a 16% decline to 5,318 units compared to 6,364 units in April 2024. This follows the 21% drop recorded in March 2025, extending the challenging pattern seen throughout FY25, where EV sales declined by 13% overall.

Retail Strength vs. Wholesale Challenges

Despite the decline in wholesale shipments, Tata Motors had achieved a notable milestone in March 2025 by securing the second position in retail sales with 48,462 units. This discrepancy between wholesale and retail performance highlights Tata's growing consumer acceptance, even as the company manages its dealer inventory more conservatively than some competitors.

Competitive Landscape: Tata vs. Hyundai

Hyundai appears to be facing even greater challenges in the passenger vehicle segment, with April 2025 shipments falling 8.9% year-on-year to 44,374 units. This represents a sharp 14.4% sequential decline from March, when Hyundai had briefly reclaimed the second position in wholesale shipments with 51,616 units, narrowly surpassing Tata Motors.

The gap between Hyundai's March wholesale figures (51,616 units) and retail sales (42,511 units) suggests potential inventory buildup at dealerships. In contrast, Tata Motors' April wholesale figure of 45,199 units, while lower than March, appears more aligned with market demand, following its strong retail performance in March.

Tata Motors continues to maintain its edge over Hyundai in domestic passenger vehicle sales for April (45,199 units versus Hyundai's 44,374 units), suggesting the company might retain its second position in retail sales for the month as well.

Commercial Vehicle Segment Faces Steeper Decline Amid Rising Competition

Tata Motors' commercial vehicle (CV) sales saw a sharper contraction in April, with total sales dropping 8% year-on-year to 27,221 units compared to 29,538 units in April 2024. Domestic CV sales felt the brunt of this decline, falling 10% to 25,764 units.

The company's Small Commercial Vehicle (SCV) cargo and pickup segment continued to be the most severely impacted, recording a substantial 23% decline with just 9,131 units sold compared to 11,823 units in April 2024. This follows a similar 17% decline observed in March 2025, highlighting the persistent financing challenges faced by first-time users and rental customers in this segment.

Tata Motors has been steadily losing market share in the SCV segment due to intensifying competition, particularly from Mahindra & Mahindra, which has been aggressively expanding its product portfolio and dealer network in this category. Industry analysts point to Mahindra's stronger rural penetration and focused financing schemes as key factors contributing to Tata's declining position in this once-dominant segment.

Heavy Commercial Vehicle (HCV) truck sales also decreased by 8% to 7,270 units, contrasting with the marginal 1% growth seen in March, which was briefly supported by a resurgence in construction and mining activities post-monsoon.

VECV Outperforms Sector with Strong Growth

The contrast between Tata Motors' performance and that of VE Commercial Vehicles Limited (VECV) is particularly striking. While Tata Motors struggled with declining sales, VECV reported impressive growth of 27.3% in April 2025, selling 6,846 units compared to 5,377 units in April 2024.

VECV's performance was particularly strong in the Light and Medium Duty (LMD) Bus segment, which saw a remarkable 61.6% growth with 2,025 units sold. This contrasts sharply with Tata's more modest 4% growth in the passenger carriers segment. Similarly, VECV's Small Commercial Vehicle and LMD truck segment below 18.5 tonnes grew by 21.5% to 2,750 units, while Tata's ILMCV segment achieved only 8% growth.

Industry experts suggest that VECV's focus on fuel efficiency, lower operational costs, and expanding service network is resonating well with fleet operators and logistics companies, potentially eroding Tata's traditional strengths in these segments.

On a positive note for Tata Motors, the Intermediate and Light Commercial Vehicle (ILMCV) truck segment maintained its upward trajectory with 8% growth, selling 4,680 units in April compared to 4,316 units in the previous year. Similarly, passenger carriers continued their positive performance, growing by 4% to 4,683 units, supported by sustained demand from State Transport Undertakings and the staff/tour travel sectors.

International business provided a bright spot, with CV exports surging 43% to 1,457 units, partially offsetting the domestic decline.