Global slowdown, model changes drag Tata Motors sales in Q1 FY26
Tata Motors reported a 10 per cent decline in global passenger vehicle (PV) wholesales in Q1 FY26, with volumes falling to 1,24,809 units from 1,38,682 units in Q1 FY25. This figure includes domestic and international shipments, as well as electric vehicles (EVs), a segment where Tata Motors has a growing presence.
Among the overall PV sales, 16,231 units were electric vehicles, which reflects sustained traction in Tata's EV expansion. But the increase in EV volume was still not enough to counter the wider fall in its internal combustion engine (ICE) range. Experts attribute model transition phases, inventory adjustments, and subdued demand in some export markets as partial reasons for the overall slide.
Also Read : Tata Harrier EV secures 10,000 bookings on the first day, production commences Jaguar Land Rover wholesales down
Jaguar Land Rover (JLR), the British arm of Tata Motors, recorded its global wholesales declining by 11 per cent to 87,286 units in Q1 FY26. Land Rover contributed 84,947 units, while Jaguar delivered only 2,339 units, indicating the brand's ongoing product transition period.
Despite the volume drop, JLR's product mix remains favorable. High-margin models like the Range Rover, Range Rover Sport, and Defender made up 77 per cent of total sales, up from 66 per cent in the year-ago period. This signals a deliberate shift in strategy toward profitability over volume, especially as Jaguar prepares for a fully electric future. Retail sales—including those from its China JV—also slipped 15 per cent year-on-year, impacted by weak demand in Europe, the UK, and North America.
Also Read : JLR to begin local assembly at Tamil Nadu plant from 2026 Key Factors Behind the Decline
The decline in wholesales across both Tata Motors and Jaguar Land Rover is being attributed to a combination of internal and external factors. One of the main reasons is model changeovers—Jaguar is transitioning out some of its more established products, and this has led to short-term volume gaps. Regulatory issues have also contributed, JLR shipments to the United States were suspended in April as a result of delays in compliance on imports.
On the macroeconomic side, a more general deceleration in major markets like Europe and the UK has taken its toll on consumer confidence, adding to sales. Finally, stock restructuring across a number of territories has prompted OEMs to rebalance inventory levels to match changing retail demand, piling yet further pressure on wholesale numbers. Commercial Vehicle Sales Also Dip, Despite Export Growth
Tata Motors' commercial vehicle (CV) portfolio—including the Tata Daewoo range—reported global wholesales of 87,569 units in Q1 FY26, down 6 per cent from Q1 FY25. The decline was primarily led by domestic market softness, even as international CV sales posted 68 per cent growth year-on-year.
12 per cent decline in June CV sales in India, especially in the intermediate and heavy commercial vehicles, reflects continued caution in freight activity as well as infrastructure-related demand. The company is expected to utilize export markets and perhaps favorable policy developments in the second half of FY26 to help recovery. Product Launches and EV Expansion Hold the Key
The future milestones for Tata Motors involve scaling up the EV range, accelerating new ICE and electric model launches, and continuing to grow export-demand for CVs. JLR's profitability-driven SUV strategy and future model launches will be watched with interest as well.
Tata Motors' Q1 wholesale decline reflects a worldwide auto slowdown and structural headwinds. Strong early EV traction and SUV-driven margins at JLR offer some compensation, but a reversal will hinge on on-time vehicle launches, tariff resolution, and a pickup in consumer sentiment in key markets.
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First Published Date: 09 Jul 2025, 09:57 AM IST
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