In the third quarter of FY26, Tata Motors Passenger Vehicles Ltd. (TMPV) reported a strong  performance, with wholesales growing by more than 22% year over year. Sustained demand  for sport utility vehicles (SUVs), a rapid increase in the use of electric cars (EVs), and better  channel inventory management were the main factors contributing to the outstanding  

performance. The firm has maintained solid momentum throughout the quarter thanks to its  continuous focus on portfolio development and demand-led growth. 

Tata Motors sold 1,71,013 passenger cars in both domestic and foreign markets during the  third quarter of FY26, up from 1,39,829 units in the same period the previous year. Volumes  of domestic passenger cars rose by over 21% to 1,68,616 units, indicating strong retail  demand in several important markets. Although starting from a lesser basis, international  business volumes also saw a significant increase, which helped to boost total growth. 

One important growth pillar is the emergence of electric automobiles

The growth narrative of Tata Motors continued to be significantly influenced by electric  vehicles. Sales of EVs, both domestically and internationally, totaled 24,103 units during the  quarter, a notable year-over-year rise of over 50%. EV sales in December alone were 6,906  units, a 24 percent increase over the same period the previous year. Tata Motors’ dominant  position in the electric mobility market has been further reinforced by the growing adoption  of EVs among Indian customers and the company’s robust EV portfolio. 

SUVs continue to be the mainstay

SUVs continued to be the mainstay of Tata Motors’ passenger car division. During Q3 FY26,  the business recorded an 18% increase in SUV volumes, with popular models including  Nexon, Punch, and Tiago making a substantial contribution to overall sales. In October and 

November, the Nexon maintained its dominant position as the best-selling vehicle and SUV  in India. The total number of Nexon units sold throughout the quarter was around 64,000.  Tata Motors’ supremacy in the small and mid-size SUV categories was further reinforced by  the Punch’s continued leadership in each respective market. 

Better channel health and yearly performance records 

Tata Motors saw a 22 percent year-over-year rise in December 2025, making it yet another  successful month for the carmaker. The business was able to lower dealer inventory levels to  about 18 days throughout the month because retail sales outpaced wholesale sales. This  illustrates Tata Motors’ methodical approach to inventory control and its focus on precisely  matching output to market demand. 

With 5,87,218 units delivered in 2025, Tata Motors Passenger Vehicles reached record  annual sales for the fifth year in a row. The company’s long-term dedication to sustainable  transportation and innovation was demonstrated by its highest-ever yearly EV sales of 81,125  units. 

Product advancements and leadership remarks 

The momentum obtained from the adoption of GST 2.0 towards the end of Q2 FY26  continued into the third quarter, according to Shailesh Chandra, Managing Director and CEO  of Tata Motors Passenger Vehicles Ltd. As a consequence, retail registrations and record  quarterly wholesales surpassed the 2,000,000-unit threshold for the first time. 

A number of significant product advancements were also made during the quarter, including  as the introduction of the much awaited Sierra and the introduction of petrol-powered  versions of the Harrier and Safari. Customers’ first reactions to these new offerings have been  positive.