Shares of Tata Motors dived after the company announced its second quarter and monthly auto sales on Tuesday.

What Happened: The Tata Group firm’s total sales in the domestic and international market stood at 2,15,034 vehicles in Q2 of FY25 compared to 2,43,024 units during the same period last year, representing a decline of nearly 12%.

The company’s total sales in the domestic market saw an 11% decline in the second quarter and a 15% slowdown for the month.

On a year-on-year basis, total commercial vehicle sales declined by 19% whereas sales of passenger vehicles decreased by 6% in Q2 of FY25. Tata Motors sold 84,281 commercial vehicles during the quarter compared to over 1 lakh units in the corresponding period last year.

This was mainly driven by lag in the sales of heavy commercial vehicle (HCV) trucks and small commercial vehicles (SCV). In the passenger vehicles segment, It sold 1.3 lakh units in the second quarter, down from 1.4 lakh vehicles in Q2FY24.

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In September alone, the automaker sold 71,345 vehicles, missing analysts’ estimates. Sales of commercial vehicles stood at 30,032 units, declining 23% from last year. 41,313 units of passenger vehicles, including electric vehicles were sold in the month, down 9% from the same period last year.

Nuvama had expected September sales to inch up slightly to 85,500 units and Motilal Oswal estimated the Tata Group company's total sales to come in at 82,432 units. In contrast, Yes Securities expected a 7% dip in total sales at 78,300 units. 

“As we move forward, with the rains easing, increased infrastructure spending, and the arrival of the festive season boosting consumption, we anticipate demand to pick up gradually in Q3,” Girish Wagh, executive director at Tata Motors said.

Price Action: Tata Motors’ shares were down 1.04% to ₹964.50 on Tuesday afternoon.

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