Tata Motors is betting on a strong rebound in its electric passenger vehicle sales this fiscal year, after volumes fell around 10 percent in FY25, dragged down by weaker demand from fleet buyers. The company’s Group CFO, PB Balaji, said during an earnings call that the slowdown was largely due to the end of the FAME II subsidy and operational challenges faced by fleet operators.
Balaji noted that Tata Motors sold about 65,000 electric vehicles in FY25 — a dip from the previous year — but expressed confidence that momentum was returning. He said the company is preparing to launch the Harrier.ev in the current financial year, followed by the Sierra.ev, and is also planning upgrades across its existing EV lineup to stimulate demand.
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Despite intensifying competition in the electric vehicle space, Tata Motors continues to lead the segment, which Balaji said is evidence that its products continue to resonate with customers. He also pointed to growing consumer interest in EVs, saying that the increased competition is helping expand the conversation around electric mobility in India.
The company is also looking to strengthen its EV ecosystem. Balaji highlighted that the fast-charging infrastructure has now expanded to nearly 21,000 stations, which he believes puts Tata Motors in a strong position to maintain its leadership in the space.
Capital expenditure for FY26 will remain steady, he added. In FY25, Tata Motors invested around Rs 8,400 crore, while its UK subsidiary, Jaguar Land Rover, spent 3.8 billion pounds. Across the group, Tata Motors made its highest-ever annual investment of nearly Rs 48,000 crore, while also delivering record revenues of approximately Rs 4.4 lakh crore.
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Tata Motors on Tuesday reported a 51 percent decline in consolidated net profit to Rs 8,470 crore for the fourth quarter ended March 2025. The company had posted a consolidated net profit of Rs 17,407 crore in the same quarter last fiscal, Tata Motors said in a regulatory filing.
Its consolidated total revenue from operations increased 0.4 percent at Rs 1,19,503 crore against Rs 1,19,033 crore in the year-ago period, thus missing estimates.
The sales volumes at JLR rose 1.1 percent in the quarter, helped by strong demand for its highly profitable SUVs in North America and Europe. While that growth has slowed over the last few quarters due to falling China sales, the high-margin business has been able to offset weak demand in Tata Motors' home market, where it sells cars, trucks and buses.
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