For Tata Motors Passenger Cars, fiscal 2025-26 was not just another year, it was also one where everything seemed to be on track, with the company ending the year with an all-time high of over 640,000 units, a year-on-year growth of about 15%. This shows that the company is not just growing. It picked up speed, hit new highs, and solidified its position in a rapidly changing market.
But even more remarkable is how the year progressed. Like the broader industry, OEMs got off to a slow start in the first half. Subsequently, with the help of holiday demand and policy support, the company rebounded strongly in the second half of the year and quickly regained momentum. By the end of the year, it had become the second largest player in the market in the second half of the year, which shows how strong its comeback is.
Q4: The strongest thrust
The final quarter sealed the milestone, with the company recording its highest-ever quarterly sales of more than 200,000 units, a 37% year-over-year increase. Strong growth was seen in March alone, with total passenger car sales increasing by nearly 29%.
Central to its success lies its SUV range. Models like the Nexon and Punch emerged as the best-selling models, especially in the second half of the year. Their popularity shows a clear shift among Indian buyers towards SUVs. At the same time, it is also seeing good demand for its hatchback, proving that it still connects well with a wide range of customers. The launch of new products such as Sierra, updated Punch and petrol versions of Harrier and Safari have already attracted attention, adding to future growth potential.
Electric vehicles: a clear growth engine
If there is one area where Tata truly stands out, it is in electric vehicles, with sales of electric vehicles exceeding 92,000 units in fiscal 2026, an increase of 43%. In the fourth quarter alone, electric vehicle sales reached approximately 27,000 units, an increase of 69%. This suggests that EV adoption is no longer slow or uncertain. Customers are now more confident and Tata continues to lead the field.
CNG and multi-powertrain strategies pay off
In addition to electric vehicles, Tata CNG vehicles also experienced strong growth, with sales exceeding 170,000 units. This highlights an important shift – today’s customers want choice. Be it petrol, diesel, CNG or electric vehicles, Tata’s multi-powertrain strategy helps it maintain its leadership position in various segments.
beyond india
Another important development is Tata’s international business. Thanks to the company’s return to markets such as South Africa, sales exceeded 10,000 units. While still small compared to domestic sales, it signals future global ambitions.
Mr. Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles Ltd. said, “FY26 was a landmark year for Tata Motors Passenger Vehicles with multiple milestones. We achieved an all-time high annual sales of over 6.40 lakh units, achieved year-on-year growth of 15% and ended the year with strong positive momentum, as per second half Vahan registrations, becoming the second largest player in the industry. We also recorded strong international business volumes, driven by our re-entry into South Africa, with industry-leading performance in the CNG segment for our emissions-friendly powertrains, with sales of over 17 million units (up 24% year-over-year), and in electric vehicles, we further solidified our leadership position through our continued focus on strengthening our value proposition and comprehensively addressing adoption barriers, which resulted in our electric vehicle sales increasing 43% year-over-year to an all-time high of more than 92,000 units. In the fourth quarter of fiscal 2026, we achieved our highest quarterly sales ever, surpassing 200,000 units and achieving 37% Strong year-over-year growth also marked our highest ever electric vehicle sales, with sales of approximately 27,000 units, a significant year-over-year increase of 69%.”
The road ahead
Looking ahead, the outlook remains positive. The industry is expected to continue growing, driven by demand for SUVs, CNG and EVs. Tata Motors, with its strong product line-up and strategy, is well-positioned to build on the current momentum. However, there are concerns – not least the global uncertainty that could impact supply chains.