Auto Sales May 2024: Tata Motors Records 2 Per Cent Growth

Tata Motors' passenger vehicle division reported wholesales of 47,075 units in May 2024, marking a modest 2 per cent year-on-year growth from 45,984 units in May 2023. However, this figure represents a nearly 2 per cent decrease compared to April 2024’s 47,983 units. In particular, the electric vehicle (EV) segment saw a 2 per cent decline with 5,558 units sold in May 2024, down from 5,805 units in May 2023.

Cumulative sales for the first two months of FY2025 reached 95,058 units, reflecting a 4 per cent increase from 92,991 units in the same period of the previous year. Despite this overall growth, EV dispatches have been a concern. May 2024 EV sales fell 4 per cent year-on-year and 12.66 per cent month-on-month. Total EV dispatches for April-May 2024 were 11,922 units, down 7 per cent from 12,321 units in April-May 2023.

Tata Motors, ranking third in the passenger vehicle market behind Maruti Suzuki and Hyundai Motor India, faces stiff competition, especially in the SUV segment from Maruti Suzuki, Mahindra & Mahindra, and Hyundai. Despite the challenges, Tata Motors benefits from its diverse ‘New Forever’ portfolio, which includes petrol, diesel, CNG, and electric powertrains. This diverse offering contributed significantly to the company’s record 582,915 units in FY2024, with CNG and EV sales making up nearly 29 per cent of total sales.

The company’s lineup includes seven PVs: Altroz, Tigor, Tiago, Nexon, Punch, Harrier, and Safari. The Nexon and Punch SUVs have shown strong demand, with the Nexon being the top-selling SUV and the Punch ranking third in India last fiscal year. While Nexon sales have recently slowed, an upcoming CNG variant is expected to rejuvenate its numbers. The Punch continues to perform well, bolstered by its new CNG and EV variants, and is set to launch the premium Altroz Racer, positioned to compete with the Hyundai i20 N Line this month.

Tata Motors has maintained a dominant position in India’s EV market, holding over 70 per cent market share with models like the Nexon EV, Tigor EV, Xpres-T, Tiago EV, and Punch EV. However, the recent decline in EV wholesales suggests increasing market competition and potential adjustments in showroom inventory.

Despite the dip in wholesales, Tata Motors retains a strong retail presence, accounting for 70 per cent of the EV market in May 2024, according to Vahan data. The company sold 4,442 units out of 6,306 electric passenger vehicles retailed last month. From January to May 2024, Tata Motors sold 23,733 EVs, representing 68 per cent of the 34,659 electric cars and SUVs sold by 14 OEMs.