Tata Motors Passenger Vehicles Ltd expects to deliver industry-leading growth in the second half of the financial year 2025-26, driven by a large festive-season booking overflow and multiple new product launches.
“We believe that Q3 is going to be stronger for us. It will be a very high retail quarter–highest ever, I would say,” Tata Motors PV Managing Director & CEO Shailesh Chandra said, adding that offtake levels in the current quarter should remain “equal, if not better than Q2.”
Chandra highlighted that the company ended October with 27 days of inventory and plans to bring it down further. “We want to bring it down to a level of 15-20 days by December-end. That’s the plan,” he said, adding that this would allow the business to enter Q4 with lean stock levels and strong pull-based demand.
A key driver of the optimism is the sizeable booking pipeline that spilled over from the festive months. “We received very strong bookings in both September and October, which we could not fully service. A significant part of that has overflowed into November,” Chandra noted. He added that November bookings were already exceeding typical levels for the month, while December is expected to be another “big retail month,” reinforcing confidence in a strong Q3.
The company also expects new launches to meaningfully support demand. “We have all the new launches that we talked about–Sierra being the big one for us, along with the Harrier and Safari petrol powertrains,” Chandra said, adding that these introductions are expected to reinforce Tata Motors’ growth trajectory in Q4. “We clearly expect H2 for us to be industry-leading growth.”
In Q2 FY26, Tata Motors’ standalone passenger vehicle business posted a 10.8% year-on-year rise in volumes to 1.44 lakh units, aided by GST rate cuts and festive demand. Revenue increased 15.6% to ₹13,529 crore, while EBITDA margin stood at 5.8%, down 40 bps YoY but showing a strong sequential recovery. The company attributed this to an improving product mix and stronger retail momentum.
The EV business continued to scale, with sales rising 59% YoY to about 25,000 units in Q2. The ICE business delivered EBITDA margins of 6.4% and the EV segment 4.2%, reflecting better mix and operating leverage.
Chandra said September was a standout month for the company. “September was particularly noteworthy, with record overall sales of 60,000 units and several other milestones,” he said, adding that the company’s multi-powertrain strategy, especially in CNG and EVs, remained a key growth pillar. In Q2, CNG and EVs together accounted for 45% of Tata Motors’ PV volume mix.
Looking ahead, the company said it expects to sustain retail momentum through Q3 with strong campaigns, model interventions, and disciplined inventory control. “Structural cost reductions and improved mix will be key levers for enhancing profitability in the coming quarters,” it said.