Tata Motors Share Price Falls 2% After 9% Drop in May Sales – What Investors Need to Know

📉 Tata Motors Shares Fall 2% as May 2025 Sales Drop 9% | Domestic Demand Drags Performance

The Tata Motors share price witnessed a notable decline on June 2, 2025, after the company reported weak monthly sales figures. Shares of Tata Motors dropped nearly 2% to ₹707 in early trade, reflecting market concerns over slowing demand in the domestic automobile sector. The decline in Tata stock price comes amid broader weakness in freight and commercial movement and disappointing quarterly financials.

📊 May 2025 Sales Performance: Tata Motors Faces Domestic Setback

According to official data, Tata Motors sold 70,187 vehicles in May 2025 across both domestic and international markets, marking an 8.6% year-on-year decline compared to 76,766 units sold in May 2024.

The company's domestic market recorded a 10% drop, with sales falling to 67,429 units, down from 75,173 units in the same month last year. This substantial decline is attributed to weak consumer sentiment and a slowdown in commercial activity.

Furthermore, commercial vehicle (CV) sales fell by 5%, reaching 28,147 units, indicating reduced movement in infrastructure and logistics sectors.

These figures highlight a worrying trend for the automaker and contribute to the bearish sentiment surrounding the Tata Motors share news.

💰 Q4 FY25 Earnings: Profit Slumps by Over 50%

Tata Motors also reported a sharp 51% fall in net profit for Q4 FY25, dropping from ₹17,407 crore in the previous year to ₹8,525 crore.

While the company’s total revenue from operations increased slightly by 0.4% to ₹1,19,503 crore, it still missed market estimates, adding to investor disappointment.

🌍 JLR Performance Offers Limited Support

On the global front, Tata Motors' luxury arm Jaguar Land Rover (JLR) reported a 1.1% increase in sales volumes, driven by strong demand for its premium SUVs in North America and Europe.

However, analysts pointed out that JLR’s EBITDA declined by 2%, and the brand is facing challenges due to:

• Rising customer acquisition costs
• Potential US tariffs
• Increased competition in China

These factors may continue to impact Tata’s consolidated performance in the coming quarters.

📉 Brokerage Downgrades and Market Sentiment

Global brokerage Jefferies downgraded the stock to ‘underperform’, setting a target price of ₹630 per share. The downgrade was based on:

• Pressure on JLR margins
• Increased operational costs
• Slowing domestic demand

At 9:20 AM on June 2, Tata Motors shares were trading at ₹711, down 1.2% intraday. Since the beginning of 2025, the stock has fallen by approximately 3%.

🧠 Conclusion: Should You Watch Tata Motors Stock?

The recent dip in the Tata Motors share price reflects concerns over weakening domestic demand and global uncertainties surrounding JLR. While the company remains a leader in the electric vehicle (EV) segment and enjoys brand strength, the near-term outlook appears cautious.

Investors should closely monitor quarterly earnings, JLR developments, and economic trends before making decisions related to Tata Motors stock.

As always, consult a certified financial advisor before investing.

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