Synopsis: Tata Motors Ltd.’s stock is under focus after the company’s announcement of a drop in global wholesales for the first quarter of FY26, with declines in the passenger, luxury, and commercial vehicle segments.
The shares of one of the leading automobile manufacturers in India which is part of the Tata Group, are in focus today after the company announced a 9% year-over-year drop in global wholesales for the first quarter of FY26. The shares of Tata Motors Ltd with a market capitalization of 2,54,371 Crores opened at Rs. 688.95, down by 0.62 percent from its previous close at Rs. 693.20.
Q1FY26 Update
The Tata Motors Group reported 2,99,664 vehicles sold globally in Q1 FY26, a 9% decrease from Q1 FY25. Tata Daewoo and other commercial vehicle sales dropped 6% to 87,569 units. Sales of passenger cars fell 10% to 1,24,809 units. Sales of Jaguar and Land Rover fell 11% to 87,286 units, with Land Rover selling 84,947 and Jaguar 2,339 units.
According to Tata Motors Executive Director Mr. Girish Wagh, the commercial vehicle segment had a slow start in Q1 FY26, with poor performance in the HCV and SCVPU categories, but moderate growth in buses, vans, and ILMCVs. He maintains his optimism regarding future volumes by pointing to potential repo rate cuts, a strong monsoon, and a renewed emphasis on infrastructure. In order to provide value-driven, tailored solutions, the business will maintain its demand-led strategy and improve customer engagement.
Analyst Outlook
Morgan Stanley has initiated an equal weight rating of Rs. 715 on Tata Motors, citing that Jaguar Land Rover’s (JLR) product mix is stronger and supporting margins, the brokerage remains optimistic despite a drop in volumes. They believe that JLR is now structurally stronger because of improved cost control, advantageous trade conditions, and premium pricing.
Tata Motors’ inventory levels have been steadily increasing over the last four years, going from Rs. 35,240 crore in March 2022 to Rs. 47,269 crore in March 2025. This suggests slower sales off-take or higher production, which could be the result of cautious demand, changes to the supply chain, or growth expectations.
Part of the Tata Group, the Tata Motors Group is a well-known worldwide automaker that produces a variety of automobiles, including cars, SUVs, trucks, buses, and military vehicles. Through subsidiaries and joint ventures, it conducts business in several nations, most notably in South Korea’s Tata Daewoo and the United Kingdom’s Jaguar Land Rover. The company operates in different vehicle segments such as Commercial Vehicles, Passenger Vehicles, Luxury Vehicles , and Electric Vehicles.
Written By Akshay Sanghavi
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