Tata Motors Limited announced its Q1 FY26 sales performance, registering a total of 2,10,415 units sold across domestic and international markets—a decline of 8.5% from 2,29,891 units in Q1 FY25. Despite headwinds in the commercial and passenger vehicle sectors, the company remains confident about a market recovery in the coming quarters.
Commercial Vehicle (CV) Segment: Mixed Performance
Tata Motors sold 85,606 commercial vehicles in Q1 FY26, down 6% YoY. Domestic CV sales stood at 79,572 units, registering a 9.2% decline, while international CV business (CV IB) surged by 68%, reaching 6,034 units, indicating strong overseas demand.
- Heavy Commercial Vehicles (HCVs): Down 12% YoY
- Intermediate & Light Commercial Vehicles (ILMCVs): Up 5% YoY
- Small CVs & Pickups: Down 17% YoY
- Passenger Carriers: Flat at 1% growth
Notably, June 2025 showed sequential growth of 8% over May 2025, signaling early signs of recovery.
Executive Director Girish Wagh attributed the decline to sluggish HCV and SCVPU segments but expressed optimism: With healthy monsoon forecasts, a reduction in the repo rate, and renewed infrastructure thrust, we expect CV volumes to progressively improve. Our Ace Pro launch and expanded international footprint set a strong foundation.
Passenger Vehicle (PV) Segment: EVs Shine Amid Overall Slowdown
Passenger vehicle sales (including EVs) totaled 1,24,809 units, down 10% YoY, with domestic PV sales at 1,23,839 units and international PVs growing by 68%.
- Overall June PV sales fell 15% YoY to 37,237 units
- EV Sales in Q1 stood at 16,231 units, marginally down 2% YoY
- EVs in June alone saw a 12% YoY growth, hinting at rising demand
Managing Director Shailesh Chandra said the company remains upbeat: EV momentum gained pace towards quarter-end, with the refreshed Tiago growing 16% YoY and new EV models like Altroz and Harrier.ev receiving positive market response. We expect these launches to boost performance in upcoming quarters
New Launches & Strategic Moves
- Ace Pro: India’s most affordable 4-wheel mini truck, starting at ₹3.99 lakh
- Harrier.ev: Production commenced in July, following June’s price reveal at ₹28.99 lakh
- Market Expansion: Entered Egypt and enhanced presence in the Middle East and North Africa
Despite a challenging start to FY26, Tata Motors is positioning itself for a rebound with a robust pipeline of vehicles, aggressive EV strategy, and renewed international focus. Favorable macroeconomic indicators—such as infrastructure investments and repo rate cuts—further strengthen the company’s outlook for the second half of the fiscal year.
