Auto Sales June 2024: Tata Reports Decline in Passenger Vehicle Sales

Tata Motors has reported a decline in passenger vehicle sales for June 2024, reflecting challenges in both domestic and export markets. The company's sales dropped to 43,524 units, marking a 7.86 per cent decrease from 47,235 units in June 2023. The decline extends month-on-month, with sales falling by 6.79 per cent from 46,697 units in May 2024, a reduction of 3,173 units.

The company's diverse lineup includes popular models such as the Nexon, Punch, Harrier, Safari, Tiago, Altroz, and Tigor, alongside several electric vehicle (EV) models. Despite this varied offering, total passenger vehicle sales in June 2024 were 43,624 units, reflecting an 8 per cent decrease from 47,359 units in the same period last year.

One of the most significant areas of decline was in the electric vehicle segment. EV sales dropped by 34 per cent year-on-year, with 4,657 units sold in June 2024 compared to 7,025 units in June 2023. This drop is attributed to the broader industry trend and the expiration of the FAME II subsidy in March 2024, which led to a preponement of fleet sales in the previous quarter. While the personal segment for EVs showed slight growth, the fleet segment experienced a sharp decline, which is expected to recover in the upcoming quarters.

Year-to-date (YTD) sales in the domestic market saw a marginal dip of 1 per cent, with 138,104 units sold compared to 140,120 units during the same period last year. Conversely, exports surged by 75 per cent, increasing to 578 units from 330. However, overall total passenger vehicle sales for the first quarter of FY25 were 138,682 units, a slight decrease of 1 per cent from 140,450 units in Q1 FY24. EV sales for the quarter also fell by 14 per cent, totaling 16,579 units compared to 19,346 units the previous year.

Tata Motors' export performance showed a significant year-on-year decline in June 2024, with only 100 units shipped compared to 124 units in June 2023, representing a 19 per cent drop.

Looking ahead, Tata Motors remains optimistic about future sales. The company anticipates that a healthy monsoon season and favourable infrastructure projects will boost demand. Additionally, upcoming launches such as the Tata Nexon CNG and Curvv EV are expected to drive sales in the latter part of the year. The Tata Harrier EV AWD, recently spotted during testing, is likely to be launched next year, adding to the company's future product lineup.