Tata Motors shares in focus after 8.6% drop in May sales to 70,187 units; commercial vehicle segment sees marginal export boost

Tata Motors' stocks can be seen to stay under the limelight on Monday, June 2, as the company witnessed its total vehicle sales dip 8.6 per cent year-on-year in May 2025. The company sold 70,187 units during the previous month in domestic and overseas markets, which is short of 76,766 units sold in May 2024. Volume pressure is in the backdrop of poor demand in major domestic segments, particularly commercial vehicles and passenger vehicles.

Home sales decline 10%, CV segment under pressure

Local sales declined 10 per cent YoY to 67,429 units in May 2025 from 75,173 units in May 2024. The CV segment was especially affected, declining 5 per cent YoY to 28,147 units from 29,691 units in May 2024.

During this segment, medium and heavy commercial vehicle (MH&ICV) sales involving buses and heavy trucks were at 12,406 units, a notch below the 12,987 units that moved in May last year. Overall MH&ICV sales, including exports, were a notch higher at 13,614 units, up from 13,532 units YoY, reflecting modest overseas market pickup.

Passenger car and EV sales trend

Tata Motors' numbers available are volumes from its two biggest subsidiaries—Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd. Although the company has yet to post a line-by-line breakdown of electric vehicle (EV) sales for May, shareholders are sure to seek trends in this high-growth area, which has been one of Tata Motors' key strategic focuses.

Share in the spotlight after Q4 results beat

The stock continues to be in focus after Tata Motors' Q4FY25 numbers were reported last week. While the company posted a sharp 51 per cent YoY fall in consolidated net profit at Rs 8,470 crore, the numbers still came in higher than Street estimates. Revenue was flat at Rs 1.19 lakh crore, and EBITDA dropped 4 per cent YoY to Rs 16,700 crore. Operating margins fell 60 basis points to 14 per cent. 

Prospects: Investors eye retail rebound, JLR indicates

Analysts highlights that Tata Motors' short-term share movement will be led by domestic PV and CV segment demand recovery and continued momentum in Jaguar Land Rover (JLR), particularly in the EV and premium SUV segments. Any development on the company's demerger plan and capex plan can also impact investor sentiment.

With May sales having been poor and Q4 numbers unbalanced, Tata Motors will need to establish a turnaround in monthly sales before the festive push.