Tata Motors Domestic Sales Decline 2% Despite Overall Growth in August 2025

Tata Motors sold 68,482 vehicles in India during August, 2% fewer than in the same month last year. Total sales including exports rose to 73,178 units from 71,693 units in August 2024.

The carmaker's home market decline mirrors troubles across India's car industry. Speculation about changes to goods and services tax has deterred buyers. Within the domestic market, commercial vehicles provided some resilience with 27,481 units sold compared to 25,864 units in August 2024, representing a 6% increase. However, this growth was insufficient to offset the decline in passenger vehicle sales.

Commercial Vehicles Drive Overall Performance

Despite domestic challenges, the commercial vehicle division showed strong performance across multiple categories. Heavy commercial vehicle trucks registered 7,451 units compared to 7,116 units in August 2024, marking a 5% increase. Meanwhile, intermediate, light and medium commercial vehicle trucks performed even stronger with 5,711 units sold, up 15% from 4,965 units in the previous year.

Furthermore, small commercial vehicle cargo and pickup sales reached 10,742 units against 10,373 units last year, a 4% growth, while passenger carriers recorded 3,577 units compared to 3,410 units in August 2024, showing a 5% increase. As a result, medium, heavy and intermediate commercial vehicle domestic sales, including trucks and buses, totaled 13,405 units compared to 12,008 units in August 2024.

Additionally, the company's international commercial vehicle business demonstrated exceptional growth at 2,382 units, a 77% increase from 1,343 units in August 2024. Consequently, total commercial vehicle sales including domestic and international business reached 29,863 units compared to 27,207 units in August 2024, marking 10% growth. When including international business, medium, heavy and intermediate commercial vehicle sales totaled 14,667 units versus 12,708 units in the previous year.

Passenger Vehicle Segment Faces Headwinds

In contrast to commercial vehicles, the passenger vehicle segment experienced significant challenges. Domestic passenger vehicle sales, including electric vehicles, fell 7% to 41,001 units from 44,142 units in the corresponding month last year. Nevertheless, the company's international passenger vehicle business provided a bright spot with 2,314 units compared to 344 units in the previous year, representing a 573% increase, though from a small base.

Subsequently, total passenger vehicle sales including domestic and international markets reached 43,315 units compared to 44,486 units in August 2024, a 3% decline. However, within this segment, electric vehicle sales across domestic and international markets reached 8,540 units compared to 5,935 units in August 2024, representing 44% growth. The company noted this as its highest-ever monthly EV sales figure.

The automotive sector has faced headwinds from various factors including policy uncertainties. Indeed, industry reports indicate that speculation around potential GST changes has affected consumer sentiment across major manufacturers including Tata Motors, Maruti Suzuki, and Mahindra & Mahindra in the passenger vehicle segment. Therefore, Tata Motors' August performance reflects these broader market dynamics, with domestic sales pressure offset partially by international business growth and strong commercial vehicle demand in certain categories.