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Informist, Friday, Nov. 14, 2025

 

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--Tata Motors PV: Expect double-digit EV sales growth in H2
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By Avishek Rakshit & Simran Rede

 

KOLKATA/MUMBAI - At a time when global demand for cars remains tepid due to macro-economic challenges, Tata Motors Passenger Vehicles Ltd. is drawing a strategy to drive up demand in the overseas markets, especially in the luxury cars vertical.

 

"Looking ahead, I think, the global demand situation continues to remain challenging, and it's fair to say that this situation from a demand perspective ain't likely to abate in the coming quarters. So therefore, we need to be prepared for driving up demand through actions from our side," P.B. Balaji, chief financial officer at Tata Motors Passenger Vehicles Group, said Friday in a call with investors after the company's results for the September quarter were announced. 

 

Sales of Jaguar and Land Rover luxury cars, which are housed under the company's JLR division and sold mostly in international markets, fell over 24% on year to 66,200 units. Sales were also affected by stoppage of production in September after a cyberattack. The JLR division accounts for around 79% of Tata Motors Passenger Vehicles' revenue.

 

"China and overseas was relatively flat quarter over quarter. The bigger pain was felt in the short shipment markets and those markets where processing of vehicles through wholesale and retail triggers was most impacted by a system shutdown. UK, North America, Europe in particular," Adrian Mardell, chief executive officer at Jaguar Land Rover, said.

 

While the volatility around tariffs in the US impacted demand there, the introduction of luxury tax on cars by China also dampened demand.

 

"On the global demand side, while there are some pockets of growth, China's luxury segment continues to shrink, Europe is struggling, and the US, while stable, is not in the position to absorb the scale of global capacity from the other regions," Mardell said.

 

The downturn in China and other regions in Europe made the company rethink on its earnings before interest, tax, depreciation, and amortisation margins and cut the earlier guidance of 5-7% to 0-2% for the current financial year.

 

"I think demand continues to deteriorate in China and doesn't get any better in other regions. So I think the reality is, even excluding the cyber incident, we almost certainly would have been amending guidance at this point," Mardell said.

 

However, on the domestic front, the company is bullish on an uptick in domestic demand after the Goods and Services Tax rate cuts in September. Apart from hatchbacks, commonly referred to as compact cars, Tata Motors Passenger Vehicles expects demand for electric cars and some variants of sport utility vehicles to grow.

 

"Domestic on the other side, we are clearly seeing resurgence in the demand, and this also means as the product offensive continues, we'd expect to see the domestic side second half likely to be pretty strong," Balaji said.

 

After weakness in the June quarter, the domestic passenger vehicles business saw a strong rebound in the September quarter as sales volume grew 10% on year for the quarter and the company's car registrations on the Vahan portal stood over 60,000 units during the September and October months each which is an all-time record high, Balaji said.

 

Given the volatility in China's supplies of rare earth minerals, which is a crucial component in making vehicles, the company is working on alternatives to substitute its use and has found some alternatives already. Going forward, the company plans to eliminate the use of rare earth minerals in its cars completely.

 

On Friday, shares of Tata Motors Passenger Vehicles closed 1.7% lower at INR 391.20 on the National Stock Exchange. End

 

Edited by Ashish Shirke

 

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