Tata Motors electric vehicle sales fall 11.2% year-on-year

Tata Motors, once the dominant force in India’s EV space, faces declining sales despite retaining the largest market share

India’s leading electric vehicle (EV) maker Tata Motors is facing a challenging financial year as the company struggles to meet its ambitious target of selling 100,000 electric vehicles in FY25. Despite dominating the electric vehicle segment with popular models such as the Nexon EV and Punch EV, the company’s electric vehicle sales fell 11.2% year-on-year in the first eight months of fiscal 2025, with 42,778 units delivered. With four months left before its fiscal 2024 sales target of 73,844 vehicles, the automaker faces an uphill battle.

Missing EV sales target

This marks the second consecutive year that Tata Motors has failed to achieve its sales target of 100,000 electric vehicles. Tata Motors Chairman N. Chandrasekaran had previously set the ambitious target of doubling the company’s electric vehicle sales in FY23 at the annual general meeting in July 2022. However, the company missed its targets in FY24 and is currently missing targets in FY25.

A Tata Motors spokesperson pointed out that the overall passenger car market is growing steadily and the adoption curve of electric vehicles is also affected. “Discontinuities in central and state policies to encourage the purchase of electric vehicles have contributed to this slowdown. As electric vehicles become a target technology for the passenger car industry, we will continue to focus on developing the mainstream electric vehicle market,” the company said.

Analysts predict that the overall passenger car market in India may end FY25 with a slight growth of 2% from the previous year, reflecting the impact of weak consumer demand.

MG Windsor steals the show

In stark contrast to Tata’s declining sales, the MG Windsor has made a huge impact since its launch. In November 2024, its sales reached 3,144 units, surpassing the Tata Nexon EV for the second consecutive month. The Windsor’s strong performance cemented its position as India’s No. 1 best-selling electric vehicle, challenging Tata Motors’ long-term dominance of the EV market.

Tata Motors’ upcoming models such as Harrier EV and Sierra EV are expected to strengthen its product portfolio, but the impact will be felt only in the next financial year. By then, the competition will be tougher as Maruti will have the eVitara, Hyundai will have the Creta EV and Mahindra will have the BE 6e and XEV 9e. As new players and models enter the market, established brands such as Tata Motors will need to adapt to maintain their market position in this rapidly evolving segment.

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