Tata Motors shares surged to a fresh record high following the company's robust December sales performance across both commercial and passenger vehicle segments. The stock climbed as much as 4.10% to reach ₹443.95 on the BSE, while Tata Motors Passenger Vehicles (TMPV) rose 1.50% to ₹372.85 during intraday trading.

Commercial Vehicle Segment Drives Growth

The commercial vehicle business delivered exceptional performance in December, with sales reaching 42,508 units compared to 33,875 units in the corresponding period last year. This represents a significant year-on-year growth of 25.50%, substantially exceeding analyst estimates of 38,550 units.

For the third quarter, commercial vehicle volumes rose to 57,080 units from 46,108 units in the previous year, marking sustained momentum throughout the period.

Passenger Vehicle and EV Success

TMPV reported strong numbers across its portfolio, with electric vehicle volumes reaching 6,906 units, representing a 24.00% year-on-year increase. Overall passenger vehicle volumes grew 14.00% to 50,519 units in December.

The company achieved several milestones during the quarter, including its highest-ever quarterly wholesale sales of 171,103 units and retail sales crossing the 200,000-unit mark for the first time.

Market Outlook and Growth Drivers

Management attributed the strong performance to sustained momentum from GST 2.00 implementation and festive season demand that carried into the third quarter. The commercial vehicle segment benefited from rebounding construction and mining activity following extended monsoon conditions, along with continued demand from core sectors and auto logistics.

Looking ahead, the company expects demand to strengthen across most commercial vehicle segments, driven by government infrastructure initiatives and expansion in end-use sectors. For passenger vehicles, management remains confident about industry growth prospects, with upcoming product deliveries and planned launches expected to accelerate the growth trajectory.

Tata Motors Passenger Vehicles Ltd reported strong sales performance for December, with total unit sales reaching 50,519 vehicles. This represents a notable 14.1% year-on-year growth, reflecting positive consumer response to its passenger vehicle portfolio and strengthening market position.

December Sales Performance

The company's December sales figures demonstrate robust growth across multiple segments. The following table summarizes the key performance metrics:

The company successfully sold 6,230 additional units compared to the same period in the previous year, showcasing improved market traction across its vehicle portfolio.

Electric Vehicle Momentum

Tata Motors Passenger Vehicles demonstrated particularly strong performance in the electric vehicle segment, with EV sales surging 24.2% to 6,906 units. This significant growth in electric vehicle adoption reflects the company's strategic focus on cleaner, emission-friendly powertrains and growing consumer preference for sustainable mobility solutions.

Quarterly and Annual Performance

The company's quarterly performance for Q3 FY26 showed substantial growth, with total sales in domestic and international markets reaching 1,71,013 units compared to 1,39,829 units during Q3 FY25. For the calendar year, Tata Motors achieved record-breaking annual sales of 587,218 units, marking the fifth consecutive year of record performance. The company also recorded its highest-ever EV volumes of 81,125 units in a calendar year.

Management Outlook

Tata Motors Passenger Vehicles MD and CEO Shailesh Chandra highlighted the industry's steady progress, powered by growing preference for SUVs and accelerating adoption of cleaner powertrains. Looking ahead, he expressed confidence about the passenger vehicle industry's growth prospects, noting that deliveries of recently introduced products will commence in Q4, with an exciting pipeline of launches and innovations positioning the company to accelerate its growth trajectory in FY26.