Tata Motors, once a dominant force in the Indian EV segment, is grappling with declining sales despite maintaining the largest market share
Tata Motors, India’s leading electric vehicle (EV) manufacturer, is facing a challenging fiscal year as it struggles to achieve its ambitious EV sales target of 1 lakh units for FY25. Despite dominating the EV segment with popular models like the Nexon EV and Punch EV, the company recorded an 11.2% year-on-year decline in EV sales during the first eight months of FY25, delivering 42,778 units. With just four months remaining, the automaker faces an uphill battle to even surpass its FY24 sales of 73,844 units.
Missing EV Sales Target
This marks the second consecutive year that Tata Motors has failed to meet its 1 lakh unit EV sales target. N. Chandrasekaran, Chairman of Tata Motors, had previously set this ambitious goal, doubling the company’s FY23 EV sales during the annual general meeting in July 2022. However, the company missed its FY24 target and is now falling short in FY25 as well.
A Tata Motors spokesperson noted that the entire passenger car market is experiencing flat growth, with the EV adoption curve similarly affected. “Discontinuity in central and state policies incentivizing EV purchases has contributed to this slowdown. With EV being the destination technology for the passenger car industry, we remain focused on developing the market for mainstreaming EVs,” the company said.
Analysts predict that the overall Indian passenger car market is likely to end FY25 with a modest 2% growth compared to the previous year, reflecting the impact of subdued consumer demand.
MG Windsor Steals the Spotlight
In stark contrast to Tata’s declining sales, the MG Windsor has made a significant impact since its launch. In November 2024, it recorded sales of 3,144 units, surpassing the Tata Nexon EV for the second consecutive month. The Windsor’s strong performance has cemented its position as the No. 1 best-selling electric car in India, challenging Tata Motors’ long-standing dominance in the EV market.
Tata Motors’ upcoming models, such as the Harrier EV and Sierra EV, are expected to bolster its portfolio, but their impact will be felt only in the next fiscal year. Competition will be even more fierce by that time, as Maruti will have their eVitara, Hyundai will have Creta EV and Mahindra will have BE 6e and XEV 9e. As new players and models enter the market, established brands like Tata Motors will need to adapt to maintain their market position in this rapidly evolving space.
Source
Source: Electric - rushlane.com
