Tata Motors' domestic sales dip 10% in Q1'26 at 2.03 lakh units

Tata Motors has reported a 12% decline in total domestic wholesales at 65,019 units in June as compared with 74,147 units in the same month last year. Overall, for Q1FY26 the company saw a 10% dip with the domestic units sold stood at 2,03,411, compared to 2,25,719 units in Q1FY25.

The company said that the sales of passenger vehicles, including electric vehicles, in the domestic market, were down 15% at 37,083 units in June, as compared with 43,524 units in the year-ago month.

Meanwhile, the total commercial vehicle sales in the domestic market fell 12% to 27,936 units from 30,623 units in June last year.

Girish Wagh, Executive Director, Tata Motors said, “Q1 FY26 began on a subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while Buses, Vans, and ILMCVs registered modest year-on-year growth.

During the quarter, we launched India’s most affordable mini-truck, the Ace Pro, offered in petrol, bi-fuel, and electric powertrains, which received an encouraging market response. We enhanced driver comfort by introducing air-conditioned cabins across our entire range of light to heavy trucks. We also expanded our international footprint by entering Egypt and expanded our offerings for the Middle East & North African region.

With forecasts for a healthy monsoon across the country, reduction in repo rate and renewing thrust on infrastructure development, we expect commercial vehicles volumes to improve progressively in the coming quarters. We remain focused on driving our demand-pull strategy and deepening customer engagement to deliver greater value and tailored solutions that help our customers grow their business.”

Tata Motors Commercial Vehicles recorded domestic sales of 79,572 units, est. 9.2% decline compared to Q1 FY25. However, June 2025 witnessed a sequential growth of 8% over May 2025. Additionally, its International Business delivered a robust 67.9% growth in volumes over Q1 FY25.

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “In Q1 FY26, the Passenger Vehicle industry experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand. The Electric Vehicle segment emerged a bright spot, driven by robust growth and the launch of new EV models across OEMs, enhancing customer interest and consideration.

Tata Motors reported wholesales of 124,809 units in Q1 FY26, including 16,231 EV units, underscoring our commitment to aligning wholesale and registration volumes. EV sales gained strong momentum towards the end of the quarter with a healthy growth trajectory. The refreshed Tiago posted 16% year-on-year volume growth in Q1 FY26 and new launches—Altroz and Harrier.ev— saw a positive market response, with their full impact expected in the coming months.

Looking ahead, while overall industry growth is expected to remain subdued, Tata Motors is well positioned to leverage its new launches to outperform across segments—including hatchbacks and SUVs, while continuing to build on the EV momentum.”