Tata Motors share price falls nearly 2% as February sales drops; check key details

The decline in the share price comes after the company has declared its February sales number. The total sales of the company tumbled 8.17% to 79,344 units in February 2025 as compared with 79,344 units in the same month last year. The domestic sales of the company dropped 9% to 77,232 units in February 2025 as against 84,834 units sold in February 2024.

The stock has tumbled 43.48% in the last 6 months signifying a major downturn in the price. However, the scrip has declined 37.72% in the last one year.

Additionally, Tata Motor’s total commercial vehicle sales also saw a significant decline of 7% to 32,533 units in February 2025 from 35,085 units reported in the same period last year. As compared with 16,227 units in February 2024, the domestic sales of medium and heavy intermediate commercial vehicles (MH & ICV) stood at 5,940 units in February 2025.

Further, the total MH&ICV sales for domestic & international business in February 2025 stood at 16,693 units, up 0.81% compared to 16,663 units in February 2024.

The downturn in the shares of Tata Motors echoes a similar pattern observed in 2015 and is raising concerns among investors and analysts about the company’s future.

The decline in the stock price of Tata Motors is also attributed to weak demand for its UK-based subsidiary, Jaguar Land Rover (JLR), particularly in key markets such as China, the UK, and the EU.

The growing concerns about potential US import tariffs on European-made cars can further impact the JLR’s prospects. The company is facing several challenges from softening sales in the medium & heavy commercial vehicle (M&HCV) sector and increasing competition in the passenger vehicle (PV) and electric vehicle (EV) markets.

Tesla's entry into the Indian market has also sparked concerns among domestic automakers, including Tata Motors. With an expected price of over ₹4 lakh, Tesla will have limited direct competition with Indian EV manufacturers.

Tata Motors posted a 22% year-on-year (YoY) decline in its consolidated net profit to ₹5,451 crore due to weaker margins and muted Jaguar Land Rover (JLR) volumes. Its net profit stood at ₹7,025 crore in the year-ago quarter. The net profit increased by 63% when compared to ₹3,343 crore reported in Q2 FY25.

The automaker’s revenue from operations for the reporting quarter increased marginally to ₹113,575, up 2.7% as against ₹109,799 crore reported in the previous fiscal.

The revenue of the commercial vehicle (CV) segment of the automaker was down by 8.4% YoY, standing at ₹18,431 crore. EBITDA margins of the segment increased to 12.4%, up 130 basis points YoY.

Tata Motors' passenger vehicle segment recorded a decline of 4.3% in revenue to ₹12,354 crore. However, its EBITDA margin improved to 7.8%, growing by 120 basis points.