Tata Motors reports a 46% surge in first-quarter sales for FY27, driven by record EV demand, as the company braces for margin pressures and supply challenges ahead of the festive season.
Tata Motors Passenger Vehicles Ltd reported a strong start to the year, saying first-quarter sales in FY27 rose 46% from a year earlier as demand for its SUVs and electric vehicles continued to build. The company sold 182,574 vehicles in the period, with domestic sales up 45% to 180,166 units and international sales jumping 148% to 2,408 units, according to sales updates and industry reports.
The electric vehicle business was a particular bright spot. Tata Motors said EV sales climbed 112% to 34,467 units in the quarter, helped by fresh demand for newer models and a broader product line-up. June was especially strong, with one report putting monthly EV sales at a record 14,800 units, while management said bookings have risen to about 3.5 times pre-crisis levels.
Even so, the earnings call made clear that margin pressure remains a major challenge. Management said commodity inflation hit earnings by 4.5 percentage points in the quarter and left EBITDA margins flat at 4%. The company is leaning on calibrated price rises, faster cost cuts and, from the third quarter, production-linked incentive accruals to help absorb further cost pressure expected in the current period.
Supply constraints are also limiting how much of the demand surge can be converted into output, particularly for the Sierra and other high-demand models. Shailesh Chandra, managing director and chief executive, said inventory levels are around 30 days and that the business is working to lift production towards 70,000 units a month ahead of the festive season. He also said the company aims to sustain higher double-digit growth in FY27, with EVs and CNG vehicles now accounting for 31% of industry sales and Tata Motors seeking to preserve its lead in greener powertrains.
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