SUV Growth Powers Market Presence
Tata Motors’ passenger vehicle (PV) segment recorded a 0.7% sequential increase in market share during Q3FY25, according to the company’s earnings conference call. The surge was primarily driven by the strong performance of its SUV lineup, including the Nexon CNG and the Curvv.
Hatchbacks and Sedans Struggle to Keep Pace
Despite the SUV segment’s success, Tata Motors’ overall market share remained muted as its hatchback and sedan models underperformed in Q3FY25. The company’s management noted that while these segments did witness growth, it was significantly lower than that of SUVs.
SUV Sales See Double-Digit Growth
Tata Motors’ SUV sales witnessed an impressive 16% YoY growth in Q3FY25. However, this came at the cost of a double-digit slowdown in hatchbacks and sedans, reflecting shifting consumer preferences toward SUVs.
Revenue Decline, But Margins Improve
The company’s PV segment revenue fell by 4.3% to ₹12,354 crore despite strong SUV sales. However, EBITDA margins improved by 120 basis points to 7.8%, aided by cost-cutting measures and PLI (Production-Linked Incentive) benefits.
Festive Demand and Inventory Optimization
Tata Motors recorded its highest-ever retail sales during the quarter, fueled by a strong festive season in October and a traditionally robust December. The company also reduced dealer inventory to below 25 days, signaling improved supply chain management.
Net Profit Declines Amid JLR Weakness
Tata Motors posted a 22% YoY decline in consolidated net profit to ₹5,451 crore in Q3FY25, missing analyst estimates. The drop was attributed to weaker margins and subdued Jaguar Land Rover (JLR) sales, despite a sequential improvement.
Overall Revenue Sees Modest Growth
Revenue from operations grew 2.7% YoY to ₹1,13,575 crore, driven by a slight improvement in overall sales, though challenges in non-SUV segments persisted.
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