Tata Motors' SUV sales shine in Q3; overall market share muted as Hatchbacks and Sedans lag

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Tata Motors' passenger vehicle (PV) segment saw a 0.7 percent increase in its market share sequentially in Q3FY25, said the company's management in its earnings conference call.

Within Tata Motors' PV segment, its SUV portfolio witnessed strong sales, particularly models like the Nexon CNG and Curve during the quarter. However, the company's overall market share remained muted during Q2FY25 its hatchback and sedan models were not performing as well in the market, the management added.

Tata Motors' SUV sales grew by 16 percent year-on-year (YoY) in Q3FY25, while hatchback and sedan sales were muted. However, the increase in SUV sales came at the cost of a double-digit regrowth in hatchbacks and sedans. Meaning, hatchbacks and sedans also had sales growth, but not as much as SUVs.

The company's PV segment recorded a 4.3 percent decline in revenue to Rs 12,354 crore. Despite this, EBITDA margin improved by 120 basis points to 7.8 percent, helped by cost-cutting measures and PLI incentives.

The company witnessed its highest retail sales during the quarter on the back of a strong festive period in October and a traditionally strong December, the management added. Plus, it was able to reduce is dealer inventory to less than 25 days, the management said.

Tata Motors reported a 22 percent year-on-year drop in consolidated net profit to Rs 5,451 crore for the third quarter of FY25, missing analyst estimates. The automaker’s performance was weighed down by weaker margins and subdued Jaguar Land Rover (JLR) volumes, despite a sequential improvement.

Revenue from operations rose 2.7 percent on-year to Rs 1,13,575 crore, driven by a modest improvement in overall sales.