Key Points:
- Tata Motors’ EV sales declined 23% year-over-year in February 2025
- Company’s EV market share dropped from 62% in 2024 to 46% in December 2024
- JSW MG Motor’s market share rose from 22% in 2024 to 41% in December 2024
- Tata attributes sales decline to withdrawal of FAME-II subsidies for commercial EVs
- JSW MG Motor saw 16.3% sales growth in February 2025, with EVs dominating sales
New Delhi: Tata Motors, once the undisputed leader in India’s electric vehicle (EV) market, is facing a significant challenge as its sales and market share continue to decline. The company’s EV sales in February 2025 dropped 23% year-over-year, from 6,923 units to 5,343 units. This downward trend has persisted throughout the fiscal year, with Tata’s EV sales sliding 12% year-on-year to 58,293 units in the domestic and international markets from April 2024 to February 2025.
Market Share Shift: JSW MG Motor Gains Ground
The impact of declining sales has been reflected in Tata Motors’ market share, which fell from 62% in 2024 to 46% in December 2024, according to a Goldman Sachs report. In contrast, JSW MG Motor has seen a remarkable rise, with its market share jumping from 22% in 2024 to 41% in December 2024. This surge is largely attributed to the successful launch of the Windsor EV in September 2024.
JSW MG Motor’s Impressive Performance
JSW MG Motor reported a 16.3% sales growth in February 2025, selling 4,956 units, with approximately 3,800 units being electric models including the Windsor, Comet, and ZS. The MG Windsor EV has been particularly successful, crossing the production milestone of 15,000 units in February, just five months after its launch.
Factors Behind Tata’s Decline
Tata Motors attributes its weakening sales to the slowdown in growth of electric four-wheelers sold for commercial purposes, following the withdrawal of FAME-II subsidies in March 2024. These subsidies had previously incentivized the purchase of electric four-wheelers for commercial use, such as taxis.
Overall EV Market Growth
Despite Tata’s challenges, the Indian EV market continues to expand. The country saw nearly 100,000 electric car sales in 2024, up from 82,688 in the previous year. The market remains primarily dominated by Tata Motors and JSW MG Motor, with Mahindra & Mahindra holding the third position with a 7% market share in 2024, followed by Chinese EV maker BYD at 3%.
Tata’s EV Portfolio and Future Outlook
Tata Motors, which launched its first electric car for personal buyers in October 2019, has sold over 200,000 electric vehicles in India to date. The company currently boasts the largest EV four-wheeler portfolio in the country, including models such as Curvv.ev, Nexon.ev, Punch.ev, Tigor.ev, and Tiago.ev.
As competition intensifies and policy landscapes shift, Tata Motors faces the challenge of maintaining its leadership position in India’s evolving EV market. The company’s ability to innovate, adapt to changing market dynamics, and respond to growing competition will be crucial in determining its future success in the electric vehicle segment.
