Despite increased production driven by inflation and high interest rates, the country's GDP has sharply declined due to reduced demand. The auto industry is currently in crisis, with many companies, including Tata, struggling to sell cars, leaving many vehicles unsold in warehouses. Companies are offering substantial discounts, yet customers remain unresponsive. While Tata's situation is dire, electric vehicles (EVs) continue to sell well.
In November, sales of electric cars and SUVs rose by 14 percent. Tata, the leading EV manufacturer, faces stiff competition from MG Motors, whose Windsor EV is proving to be a game changer, significantly boosting their sales while Tata's have declined. With Mahindra's EVs set to launch in the next two months, Tata may face even greater challenges given its stagnant service performance.
In November 2023, 7,539 electric cars were sold, rising to 8,696 in November 2024. However, Tata's sales dropped from 5,124 cars in November 2023 to 4,196 in November 2024, a decline of nearly 18 percent. This represents a decrease of over 2,200 units compared to October 2024, when 6,449 cars were sold. Despite the recent launch of the Curve EV, it has not provided the anticipated boost for Tata. In contrast, MG sold three times more cars in November 2024 than in November 2023, with the Windsor contributing significantly to this growth. MG's sales jumped from 956 cars last year to 3,126 this year.