Tata Motors shares slipped over 1% on Monday after the automaker posted disappointing sales figures for May 2025, raising concerns among investors. A sharper-than-expected drop in domestic performance, coupled with a weak quarterly earnings report, weighed heavily on sentiment—even as global demand for Jaguar Land Rover vehicles provided a much-needed cushion.
May 2025 Sales Drop Highlights Weak Domestic Demand
According to Tata Motors’ latest release, total vehicle sales fell 8.6% year-over-year (YoY) to 70,187 units in May 2025, down from 76,766 units a year earlier. The domestic market saw a more pronounced 10% drop, with 67,429 units sold compared to 75,173 in May 2024.
Commercial vehicle sales also softened, declining 5% YoY. Tata Motors moved 28,147 commercial units in May 2025, versus 29,691 units during the same month last year. In particular, domestic sales of medium and heavy commercial vehicles (M&HCV)—a key segment that includes trucks and buses—dipped to 12,406 units from 12,987 YoY.
That said, total M&HCV sales, including exports, showed a slight improvement at 13,614 units, just ahead of last year’s 13,532. These numbers encompass the performance of Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, the company’s key subsidiaries in the passenger and electric mobility sectors.
Q4 Earnings Miss Estimates, Dividend Announced
On the earnings front, Tata Motors reported a steep 51% drop in consolidated net profit for Q4 FY25, totaling ₹8,470 crore compared to ₹17,407 crore in the same period last year. Consolidated revenue inched up just 0.4% to ₹1,19,503 crore, falling short of analyst forecasts.
Total expenses declined to ₹1,09,056 crore from ₹1,11,136 crore YoY, offering slight relief amid revenue pressures. Meanwhile, the company proposed a final dividend of ₹6 per equity share (300%) for FY25. If shareholders approve it during the upcoming AGM, the payout is expected on or before June 24, 2025. Official details can be found on the Tata Motors Investor Relations page.
Jaguar Land Rover (JLR) Demand Supports Margins
While domestic demand lagged, Tata Motors found support from Jaguar Land Rover’s global performance. JLR volumes grew 1.1% in Q4, with strong SUV demand in North America and Europe. Despite softness in the Chinese market, the high-margin luxury segment continues to lift overall profitability.
JLR’s revenue rose 2.4% during the quarter, reflecting steady growth in key international markets and underscoring the brand’s strategic importance in Tata Motors’ portfolio.
Tata Motors Share Price Forecast: What’s Next?
According to Trendlyne, the average analyst target price for Tata Motors stock is ₹803, indicating a potential 12% upside from current levels. Of the 30 analysts covering the stock, the majority maintain a ‘Hold’ recommendation.
Over the past year, Tata Motors shares have declined 22%, although the two-year performance remains strong with a 39% gain. The company’s market capitalization stands at ₹2,64,862 crore, reflecting its resilient long-term value despite recent headwinds.
Investors are now watching closely to see if sustained global demand—particularly through JLR—can offset the drag from weaker domestic volumes and drive a recovery in Tata Motors’ share price through the remainder of 2025.