Mumbai, July 8, 2025 – Tata Motors Group reported global wholesales of 2,99,664 units in the first quarter of FY26, a decline of 9% compared to the same period last year. The figures include Jaguar Land Rover (JLR) sales but exclude the volumes from CJLR, the joint venture between JLR and China’s Chery Automobiles.
Commercial vehicle wholesales for the group, including the Tata Daewoo range, stood at 87,569 units, down 6% year-on-year. Passenger vehicle sales, which include electric vehicles, were recorded at 1,24,809 units, witnessing a 10% drop compared to Q1 FY25.
Jaguar Land Rover contributed 87,286 vehicles to the overall tally, which is 11% lower than the previous year. Breaking it down further, Jaguar's wholesale numbers were a modest 2,339 vehicles, while Land Rover wholesales stood at 84,947 units. The steep fall in Jaguar sales was attributed to the planned wind-down of older Jaguar models as part of a strategic transition toward an electric and modernized portfolio.
On the retail front, JLR sold 94,420 units globally in Q1 FY26, registering a sharper drop of 15.1% compared to the same quarter in FY25. The decline was expected, given the combined impact of the model phase-outs and recently imposed US tariffs.
A key pressure point for Tata Motors has been the evolving trade landscape. President Trump recently announced a 25% tariff on all autos manufactured outside the US. While this move hit several international automakers, it particularly affected JLR’s profitability outlook. Tata Motors had earlier guided for 10% operating margins at JLR, but at the Annual General Meeting, the company revised this forecast down to 5-7%, citing cost inflation and tariff pressures.
However, there is a silver lining. A recently signed Free Trade Agreement (FTA) between the UK and the USA has revised the auto tariff rate down to 10%, which could ease some of the margin stress going forward. This development is viewed positively by investors and industry watchers, especially considering the brand strength of Land Rover in North America.
Despite the overall sales dip, JLR’s high-margin premium SUV lineup has continued to gain traction. The combined wholesale mix of the Range Rover, Range Rover Sport, and Defender models reached 77.2% in Q1 FY26 – a sharp rise from 66.3% in the previous quarter and 67.8% a year ago. In fact, Range Rover volumes surged 66% year-on-year in Q1, a significant feat in the luxury auto segment, especially amid challenging trade policies.
This growing premium mix is a strategic pivot for Tata Motors and JLR, cushioning some of the pressure from falling overall volumes and helping maintain investor confidence. Earlier this year, Jaguar sales in April had plunged 97% year-on-year, yet the market remained unfazed – a reflection of the confidence placed in the company’s evolving product strategy.
That said, the broader Tata Motors stock has been under pressure, already down more than 40% from its peak, driven by global uncertainty, weak guidance, and cost pressures. While the near-term outlook remains cautious, the company's focus on high-margin models and easing tariff conditions under the new UK-US FTA could offer a path to stabilization and eventual recovery.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult their financial advisors before making investment decisions.
