Tata Motors’ Car Sales Slump 9% In September As EVs Find Fewer Takers

Tata Motors Ltd. has dispatched fewer cars to dealerships ahead of the crucial festive season, underscoring the inventory build-up seen in the wider industry.

Total car sales of India’s third largest carmaker fell 9% year-on-year to 41,313 units in September 2024, as against 45,317 units in the year-ago period, according to an exchange filing on Tuesday. Its best-selling electric cars were particularly hit—EV sales were down 23% year-on-year to 4,680 units as against 6,050 units a year earlier.

“The PV industry in Q2 FY25 saw more than 5% decline in retails (VAHAN registrations) compared to Q2 FY24, driven by slow consumer demand and seasonal factors,” Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd. and Tata Motors Electric Mobility Ltd., said in the filing. “In contrast, industry offtake was significantly higher than registrations in anticipation of a strong start to the festive season, resulting in a continued buildup of channel stock.”

In addition, EV sales in the personal segment were affected by the lapse of registration and road tax waivers in key states, Chandra said. "Fleet EV sales continued to remain impacted due to lapse of FAME II and non-inclusion of the fleet segment in the PM-eDRIVE scheme."

But Tata Motors is already seeing a silver lining, in terms of higher vehicle registrations.

“Registrations picked up pace towards the end of the month which augurs well for the festive period ahead,” Chandra said. “We remain focused on driving consumer preference for our exciting range of vehicles while maintaining the health of our dealer network.”

(This is a developing story.)