Tata Motors Sales Drop 8.6% in May Amid Mounting Competition

Tata Motors Limited registered total sales of 70,187 units in May 2025, marking an 8.6% decline from 76,766 units sold in the same period last year. The Mumbai-based automaker faced headwinds across both commercial and passenger vehicle segments, with domestic sales falling 10% to 67,429 units compared to 75,173 units in May 2024.

The May performance follows a similar trend observed in April 2025, when Tata Motors reported total sales of 72,753 units, down 6.2% from 77,521 units in April 2024. Combined, the company has lost approximately 13,133 units in sales volume over the two-month period compared to the previous year.

Commercial vehicle sales declined 5% year-on-year to 28,147 units in May, with domestic sales falling 9% to 25,872 units. The segment faced particular pressure in small commercial vehicles, where cargo and pickup sales dropped 20% to 9,064 units. Heavy commercial vehicle trucks also saw a 10% decline to 7,106 units, while intermediate light and medium commercial vehicle trucks bucked the trend with 11% growth to 4,954 units.

Passenger vehicle sales, including electric vehicles, fell 11% to 42,040 units in May from 47,075 units in the previous year. Domestic passenger vehicle sales declined 11% to 41,557 units, continuing a pattern of weakness that has persisted throughout 2025. The company's electric vehicle sales showed marginal improvement with 2% growth to 5,685 units, though this failed to offset broader passenger vehicle declines.

The sales figures reflect intensifying competition in India's automotive market, particularly in the electric vehicle segment where Tata Motors has historically dominated. The company's EV market share has declined significantly from 70% in FY2024 to 53% in FY2025, while competitors MG Motor and Mahindra have gained substantial ground. In April 2025, Tata's monthly EV market share fell to 36% compared to 61% in the same month last year.

MG Motor India has emerged as a formidable challenger, with its Windsor EV model capturing 28% of the April EV market share, up from 16% in April 2024. The success of the Windsor EV, which offers a battery-as-a-service model allowing customers to pay for battery usage separately, has helped MG significantly expand its presence in the electric vehicle market.

Mahindra has also gained momentum with the launch of its new electric SUVs, the BE 6 and XEV 9e, which have contributed to the company's growing EV market share. Mahindra's EV market share jumped to 15.8% in March 2025, representing one of the most significant month-on-month gains in the Indian EV sector's history.

Despite the challenging environment, Tata Motors showed strength in certain commercial vehicle export segments, with international business sales growing 87% to 2,275 units in May. The company's medium and heavy commercial vehicle segment, including trucks and buses, maintained relatively stable performance with domestic sales of 12,406 units compared to 12,987 units in May 2024.

Tata Motors operates through its subsidiaries Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited. The company has one of the largest electric vehicle portfolios in India, including the Nexon EV, Tigor EV, Tiago EV, Punch EV, and Curvv EV models.

The automotive industry has faced multiple headwinds in 2025, including the lapse of government subsidies under the FAME scheme, which particularly impacted fleet segment sales. Rising competition from both domestic and international manufacturers has also pressured market leaders to reassess their strategies and pricing approaches.

Looking ahead, the company faces the challenge of defending its market position while adapting to evolving consumer preferences and competitive dynamics. The success of competitors' innovative offerings, particularly in the electric vehicle segment, suggests that product differentiation and competitive pricing will be critical factors in determining future market share.