By Niranjan Ghatule | October 2025
Tata Motors has surprised investors and the entire auto industry with a stellar performance in September 2025. The Indian auto giant has overtaken Mahindra and Hyundai to secure the second spot in monthly car sales, just behind Maruti Suzuki. With nearly 60,000 cars sold, September turned out to be the best month in Tata Motors’ history in terms of passenger vehicle sales.
The strong performance has been attributed to multiple factors, including festive season demand, GST reduction by the Indian government, and attractive discounts rolled out during Dussehra and Navratri. The surge reflects not only improved consumer sentiment but also Tata Motors’ expanding product portfolio across SUVs, hatchbacks, and electric vehicles.
EV Sales: A Big Win Against JSW MG Motors
One of the biggest highlights of September was Tata Motors’ electric vehicle (EV) sales, which nearly doubled year-on-year. The company sold around 9,100 EV units, giving a clear indication of India’s rising EV adoption.
However, the EV battle is heating up. JSW MG Motors, which has been aggressively expanding its EV lineup, has been grabbing market share from Tata Motors. The September sales numbers will act as a reality check for Tata Motors, which has long enjoyed a leadership position in India’s EV space. Despite this, Tata still maintains an edge in volumes, thanks to strong performance from models like Nexon EV and Tiago EV.
Investor Worries: JLR, Trump Tariffs, and Cyberattack
While domestic sales are booming, Tata Motors’ stock price continues to trade nearly 38% below its peak. The biggest drag remains its UK-based subsidiary, Jaguar Land Rover (JLR), which contributes almost 70% of Tata Motors’ total revenue.
President Donald Trump’s tariff policies on UK exports to the USA hit JLR hard, leading to a 44% drop in Tata Motors’ shares from their all-time highs. To make matters worse, the recent cyberattack on JLR plants cost the company an estimated €1.5 billion, further weighing on investor sentiment.
These global headwinds have overshadowed Tata Motors’ domestic success story, leaving investors cautious about long-term stability.
Q2FY26 Results: The Next Big Trigger
With September sales setting new records, all eyes are now on Tata Motors’ Q2FY26 results. Investors are keen to see whether the company can sustain its strong domestic performance while addressing JLR’s ongoing challenges.
If Tata Motors can deliver consistent earnings growth in the coming quarters and show signs of recovery in JLR operations, the stock may see a re-rating despite current headwinds
Conclusion
Tata Motors has proven its strength in the domestic market with record sales, strong festive demand, and robust EV growth. Yet, global challenges continue to weigh on its stock price. The coming quarters will be crucial in determining whether Tata Motors can maintain momentum and balance its dual challenges of growing EV adoption in India and stabilizing JLR’s performance overseas.
For now, September 2025 marks a historic milestone for Tata Motors, making it India’s second-largest car brand by monthly sales—a remarkable achievement that has shifted the dynamics of the Indian automobile market.
Disclaimer:This article is for informational purposes only and should not be considered as investment advice. Stock market investments are subject to market risks. Readers are advised to do their own research or consult with a qualified financial advisor before making any investment decisions.
