Tata Motors Reports Marginal YoY Drop in Domestic CV Sales for December 2024

Key Highlights

• Tata Motors December 2024 sales were down 1% YoY to 32,369 units.
• HCV sales dropped by 15%, while passenger carriers grew by 35%.
• SCV cargo and pickup segment saw a 2% growth.
• Q3 FY25 sales improved 24% over November 2024.
• Tata Motors expects better demand in Q4 FY25.

Tata Motor’s domestic commercial vehicle sales showed a slight drop in December 2024, with a total of 32,369 units sold. This marked a 1% decline compared to December 2023, when the company sold 32,668 units. Despite the overall drop, some vehicle segments showed growth.

Also Read: Volvo Eicher Commercial Vehicles (VECV) Records December 2024 Sales of 6,426 Units

The heavy commercial vehicle (HCV) segment saw a significant decline of 15%, with 9,520 units sold in December 2024, down from 11,199 units in December 2023. In contrast, the intermediate, light, and medium commercial vehicle (ILMCV) segment remained almost unchanged, with 5,687 units sold, compared to 5,675 units last year.

The passenger carrier segment, however, performed well, showing a 35% increase with 4,144 units sold in December 2024, up from 3,060 units the previous year. The small commercial vehicle (SCV) cargo and pickup segment also experienced a modest 2% growth, reaching 13,018 units in December 2024, compared to 12,734 units in December 2023.

Here’s a breakdown of the sales figures for December 2024:

Q3 FY25 Overview and Outlook

Girish Wagh, Executive Director of Tata Motors Ltd., stated that Tata Motors saw a total of 91,260 commercial vehicle units sold in Q3 FY25, a small 1% decline compared to Q3 FY24. However, this was a significant improvement compared to the 19% drop in sales recorded in the previous quarter, Q2 FY25. Sales in December 2024 were also 24% higher than November 2024.

Wagh attributed the growth in the HCV segment to the resurgence of construction and mining activities after the monsoon, as well as demand from the festive season. Despite a 9% YoY decline in the segment, the company saw strong sequential growth.

The ILMCV segment grew by 3% YoY, driven by high demand, while the medium commercial vehicle (MCV) segment posted an impressive 40% YoY growth. The passenger carrier segment also continued to perform strongly, with a 30% YoY increase, driven by demand from state transport undertakings and the travel and tour segments.

Small and light commercial vehicles faced challenges, with a 2% YoY decline due to financing difficulties among first-time buyers and rental customers.

Looking Ahead

Wagh remains optimistic for the future, expecting demand to improve in Q4 FY25 across most commercial vehicle segments. He highlighted the government's focus on infrastructure development and growth in end-use sectors as key factors that will benefit the commercial vehicle industry in 2025.

Also Read: Tata Motors Sales Report November 2024: Domestic CV Sales Decline by 1%

CMV360 Says

Tata Motors faced a small decline in December 2024 commercial vehicle sales but remains positive about future growth. The company's performance in Q3 FY25 showed improvement, and it anticipates a recovery in demand, driven by government infrastructure initiatives and sector growth.