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Tata Motors Shifts Gears in Q1 FY26 – Sales Dip, But Strategy Stays in the Fast Lane

Mumbai: Tata Motors, India’s homegrown automotive powerhouse, might be nursing a flat tyre in terms of Q1 FY26 numbers, but it’s already tightening the lug nuts and prepping for a stronger comeback lap.

The company clocked total sales of 2,10,415 units across domestic and international markets in Q1 FY26 — a downshift of 8.5% from 2,29,891 units in the same quarter last year. While the Commercial Vehicle (CV) division sold 85,606 units (a modest 6% drop YoY), the Passenger Vehicle (PV) segment registered 1,24,809 units, skidding by 10% compared to last year.

But don’t mistake the dip for a stall — Tata Motors has been busy under the hood.

Commercial Vehicles: A Mixed Terrain

Tata’s Medium, Heavy and Intermediate Commercial Vehicles (MH&ICVs) clocked 37,370 units in Q1 FY26, down from 40,349 a year ago. Domestic sales in June 2025 stood at 12,871 units, with international sales revving up impressively to support the balance sheet.

Girish Wagh, Executive Director at Tata Motors, noted,

“Q1 FY26 began on a subdued note for the CV industry. However, our international business delivered a robust 67.9% growth, and June saw a sequential uptick. With growing infrastructure focus, repo rate cuts, and monsoon forecasts in our favour, we’re optimistic about the road ahead.”

In what can only be described as Ace up their sleeve, Tata launched India’s most affordable mini-truck – the Ace Pro – now available in petrol, bi-fuel, and electric avatars. Think of it as the Swiss Army Knife of last-mile delivery.

Also turning heads (and hopefully air vents), Tata Motors introduced air-conditioned cabins across its light to heavy truck portfolio — finally answering the age-old question: “Can trucks be chill too?”

Passenger Vehicles: A Short Coffee Break

With PV sales dropping 10%, it seems customers temporarily hit snooze on showroom visits. But with Tata’s EV portfolio still sparking interest and the festive season ahead, there’s potential for a quick recharge.

Looking Ahead: From Sales Charts to Weather Charts

With rain gods expected to cooperate, a likely repo rate cut, and Tata’s aggressive international expansion (hello, Egypt!), the automaker seems poised to shift back into a higher gear.

So while Q1 FY26 might have tested the clutch, Tata Motors appears ready to turbocharge Q2 with new products, new markets, and a focus on customer-first innovations.

Because when the going gets tough, the Tata gets innovative.

Domestic Sales Performance:

Category June’25June’24% ChangeQ1 FY26Q1 FY25% Change
Total Domestic Sales 65,01974,147-12%2,03,4112,25,719-10%

Commercial Vehicles:

Category June’25June’24% ChangeQ1 FY26Q1 FY25% Change
HCV Trucks  7,3598,891-17%21,73524,690-12%
ILMCV Trucks 4,8634,997-3%14,49713,7915%
Passenger Carriers  5,6585,6540%15,08914,8931%
SCV cargo and pickup 10,05611,081-9%28,25134,241-17%
Total CV Domestic 27,93630,623-9%79,57287,615-9%
CV IB 2,3021,35770%6,0343,59468%
Total CV 30,23831,980-5%85,60691,209-6%
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