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Tata Motors Passenger Vehicles shares fell 3.47% to Rs 273.65 on October 1, 2026, despite reporting 40% year-on-year growth in Q2 FY27 passenger vehicle sales and a 90% surge in EV sales. The Nifty Auto index declined 4.47% to 25,117, reflecting broader sector concerns despite the company’s strong operational performance.
Tata Motors Passenger Vehicles shares dropped 3.47% to an intraday low of Rs 273.65 on October 1, 2026, despite reporting 40% year-on-year growth in Q2 FY27 passenger vehicle sales (201,723 units) and a 90% rise in EV sales (47,150 units). The Nifty Auto index fell 4.47% to 25,117, with Tata Motors PV shares down 25% year-to-date. Domestic PV sales rose 40% to 196,674 units, while international PV sales grew 20% to 5,049 units. EV sales surged 90% to 47,150 units in Q2 FY27, with EV penetration reaching 23% in Tata Motors PV’s portfolio, compared to 8% industry-wide.
The company’s strong growth in electric vehicles (EVs) and compressed natural gas (CNG) vehicles highlights its strategic shift toward greener powertrains. Management noted that EVs accounted for 23% of the company’s sales in Q2 FY27, with CNG contributing 28% of volumes. Together, EV and CNG made up 51% of total sales, signaling a significant transition from traditional internal combustion engines. Shailesh Chandra, MD and CEO of Tata Motors PV, emphasized that industry Vahan volumes grew 24% year-on-year, driven by rising adoption of greener powertrains.
The stock’s decline despite robust sales growth underscores investor skepticism about demand sustainability and macroeconomic headwinds. While the company reported its highest-ever quarterly sales of 201,723 units, the broader auto sector faced weakness, with the Nifty Auto index dropping 4.47%. Analysts suggest the decline may reflect concerns about overvaluation or margin pressure from rising input costs, despite operational performance.
Tata Motors PV plans to scale production to meet festive-season demand, with upcoming launches including the Curvv SeriesX, Sierra Legend Series, and all-new Tata Aeris. The company remains optimistic about festive-season demand, citing a strong order book and healthy customer traction across its portfolio.
Tata Motors PV’s shares fell despite 40% Q2 sales growth, highlighting market skepticism about demand sustainability. The 90% EV sales surge underscores a strategic shift toward greener technologies, but broader auto-sector weakness and macroeconomic concerns may limit near-term gains. The company’s ability to scale production and leverage festive-season demand will be critical to sustaining growth.
Topics: India Markets, Automotive Industry, Stock Market, EV Sales, Tata Motors, Nifty Auto Index, Green Powertrains, Passenger Vehicles, Financial News, Market Trends
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Source: ET Markets
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