Tata Motors slows down with 8.5 per cent dip in Q1 vehicle sales

MUMBAI: When the going gets tough, even the trucks slow down and Tata’s latest sales pitstop shows just that. Tata Motors hit a speed bump in the first quarter of FY26, clocking 2,10,415 units in total vehicle sales, a decline of 8.5 per cent year-on-year from 2,29,891 units in Q1 FY25. The slide was felt across both passenger and commercial segments, as domestic demand cooled off amid high base effects, macro headwinds, and flat market sentiment in May and June.

Commercial vehicles bore the brunt, with total CV sales down 6 per cent YoY to 85,606 units. While HCV trucks fell 12 per cent, and small commercial vehicles (SCVs and pickups) dropped 17 per cent, there was some traction in ILMCV trucks and passenger carriers, which managed modest growth of 5 per cent and 1 per cent respectively. Interestingly, Tata’s international CV business was in overdrive revving up 68 per cent over the same quarter last year, thanks to new markets like Egypt and expanded play in the MENA region.

Passenger vehicles also faced headwinds, with sales slipping 10% to 1,24,809 units, of which EVs contributed 16,231 units, a marginal 2 per cent dip YoY. The good news? Electric optimism is holding charge. EV sales picked up pace towards the quarter’s end, and new launches like the Altroz and Harrier.ev are expected to spark further momentum in the months ahead. The refreshed Tiago, meanwhile, zipped ahead with 16 per cent YoY growth.

In the domestic market alone, Tata sold 2,03,411 vehicles, down 10 per cent, while international business sales rose on the back of a strong 67.9 per cent lift in CV exports.

Tata Motors executive director Girish Wagh called it a “subdued start” to the fiscal, pointing to muted demand in heavy and small truck segments. But he remained upbeat, banking on a “healthy monsoon, repo rate cuts, and infrastructure push” to recharge CV demand in coming quarters. The company also launched India’s most affordable mini-truck, the Ace Pro, in multiple fuel variants, and introduced air-conditioned cabins across its truck range, a move aimed at improving driver comfort in gruelling conditions.

Passenger Vehicles MD Shailesh Chandra, meanwhile, struck a cautiously optimistic note: “The EV segment was a bright spot,” he said, adding that Tata is “well positioned” to build on its lead with a fresh lineup across hatchbacks and SUVs.

With the festive season on the horizon and fuel prices stabilising, Tata’s drive through FY26 may yet shift back into a higher gear. For now though, it’s a recalibration pitstop and the engines are humming, but not quite roaring.

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