Strategic price cuts following GST revisions and festive promotions propel Nexon to unprecedented monthly shipments, marking Tata Motors' highest-ever single-model dispatch amid fierce sub-4-meter SUV competition.
01 Oct 2025 | 5155 Views | By Sarthak Mahajan
Tata Motors said it dispatched more than 22,500 units of the Nexon to dealers in September 2025, setting a new high for monthly sales of any single vehicle in the company's history. This figure contributed to overall passenger vehicle (PV) dispatches of 59,667 units in the domestic market, reflecting a ...
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Tata Motors said it dispatched more than 22,500 units of the Nexon to dealers in September 2025, setting a new high for monthly sales of any single vehicle in the company's history. This figure contributed to overall passenger vehicle (PV) dispatches of 59,667 units in the domestic market, reflecting a 45% increase from September 2024.
The Nexon, a sub-4-meter SUV introduced in 2017, is available in petrol, diesel, CNG, and electric variants. Cumulative sales had reached over 887,000 units by August 2025. The model's features include a 5-star Global NCAP safety rating, six airbags as standard, and options like a panoramic sunroof and advanced infotainment systems.
The increase in Nexon shipments followed revisions to GST rates effective September 22, 2025. Tata Motors reduced prices across its internal combustion engine (ICE) models, with Nexon variants seeing cuts of up to Rs 1.55 lakh. Entry-level prices started at Rs 7.31 lakh (ex-showroom) after the adjustments.
Additional discounts under the 'Festival of Cars' campaign, valid through September 30, 2025, offered total savings of up to Rs 2 lakh on the Nexon. These measures coincided with preparations for the festive season, including Navratri and Diwali, which typically boost automotive demand.
Electric variants of the Nexon were not affected by the GST changes, maintaining prices starting at Rs 12.49 lakh. Tata's EV sales overall rose to 9,191 units in September, while CNG PV sales grew significantly.
In recent years, the Nexon has encountered significant challenges in the highly competitive sub-4-meter SUV segment, where it competes against strong rivals such as the Maruti Suzuki Brezza, Hyundai Venue, Kia Sonet, and Mahindra XUV3XO. This intense competition has led to fluctuating market positions and sales declines in certain periods. For instance, in calendar year 2024, Nexon sales dropped to around 1.6 lakh units from 1.7 lakh in 2023, pushing it down to sixth place among top-selling SUVs.
To address these challenges and revive sales, Tata Motors seems to have adopted an aggressive discounting strategy, including moves to clear inventory on the 2024 model. The strategy escalated in September with price reductions following GST revisions, combined with festive promotions, which appear to have successfully driven the record shipments.
Company Performance and Market Context
Tata Motors' total PV sales, including exports, reached 60,907 units in September. In the second quarter of FY26, PV dispatches totaled 144,397 units, a 10% year-on-year increase. EVs accounted for 17% of sales, with 24,855 units, up 59% from the previous year. CNG sales exceeded 17,800 units, marking a 105% growth.
The Nexon competes in the sub-4-meter SUV segment against models like the Maruti Suzuki Brezza and Hyundai Venue. Tata Motors ranked second in India's PV market for the month. While Tata is using the Nexon as its volume leader, Maruti Suzuki seems to be focusing on entry-level segment with S-Presso to drive overall sales volumes, even as its utility vehicle segment experienced a decline in September.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., stated that the GST revisions represent "a progressive and timely decision that will make personal mobility more accessible for millions across India."
Outlook
Tata Motors expects continued demand through the festive period. Future plans include updates to the Nexon lineup, with a next-generation model anticipated in 2027.