Tata Motors shares fall 2% as May sales skid 9% amid domestic demand weakness

Tata Motors shares are down 3 percent since the beginning of the year.

Shares of Tata Motors slipped 2 percent to Rs 707 in morning trade on June 2 after the company's vehicle sales nosedived 8.6 percent year-on-year in May 2025, as weakness in the domestic market weighed on overall performance. The automaker sold 70,187 vehicles across domestic and international markets last month, compared to 76,766 units in May 2024.

In the domestic market, sales dropped 10 percent to 67,429 units, down from 75,173 units a year ago. Commercial vehicle sales declined 5 percent to 28,147 units, reflecting a broader moderation in freight demand and infrastructure movement, official data showed.

Follow our LIVE blog for all the latest market updates

Within the commercial segment, domestic sales of medium and heavy commercial vehicles (MH&ICV), which include trucks and buses, came in at 12,406 units, slightly below last year's 12,987 units. However, total MH&ICV volumes, including exports, edged up to 13,614 units from 13,532 units in the year-ago period.

The sales figures also factor in contributions from Tata Motors' subsidiaries—Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited.

The company reported a 51 percent fall in net profit for the quarter ended March 2025. The Nexon maker had posted a consolidated net profit of Rs 17,407 crore in the same quarter last fiscal. 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.

Meanwhile, 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.

Jefferies has given an 'underperform' rating on Tata Motors, setting a target price of Rs 630 per share. The firm highlighted that Tata Motors' fourth-quarter EBITDA declined by 2 percent, mainly due to lower margins at JLR. It expects a challenging year ahead for JLR, citing pressure from US tariffs, increasing competition in China, and rising customer acquisition costs.

At about 9:20 am, shares of the company were trading at Rs 711, lower by 1.2 percent from the last close. Tata Motors shares are down 3 percent since the beginning of the year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.