Tata Motors, TMPV rally up to 4% post Dec sales; brokerages remain upbeat

Tata Motors outlook: With GST rationalisation & pick up in government capex, commercial vehicle volumes are likely to improve going forward, believes the management.

Tata Motors, Tata Motors Passenger Vehicles shares today

 

Shares of Tata Motors (formerly known as TML Commercial Vehicles) and Tata Motors Passenger Vehicles (TMPV) rallied up to 4 per cent on the BSE in Friday’s intra-day trade after these companies reported December sales and guided a healthy outlook.

 

Among individual stocks, Tata Motors hit a record high of ₹443.95, soaring 4 per cent in intra-day trade. The stock price of Tata Group’s commercial vehicle company surpassed its previous high of ₹433.65 touched on December 24, 2025. Shares of TMPV were up 1.5 per cent to ₹372.85 in intra-day trade.

 

 

At 09:26 AM; Tata Motors and TMPV were quoting 2 per cent and 1 per cent higher, respectively. In comparison, the BSE Sensex was up 0.19 per cent at 85,347.   

 

Tata Motors, TMPV post healthy December sales

 

In December 2025, Tata Motors CV reported healthy volumes of 42,508 units, up 25.5 per cent year-on-year (YoY). Domestic & International sales for MH&ICV in December 2025 were 21,646 units vs 16,604 units in December 2024; In Q3FY26 it was 57,080 units, compared to 46,108 units in Q3FY25.

 

The sales momentum ignited by GST 2.0 and the festive surge in Q2FY26 continued into Q3FY26, driving growth and lifting overall sentiment of the commercial vehicles industry. Tata Motors registered a double-digit sales growth in Q3FY26, powered by a strong rebound in construction and mining activity post the extended monsoon, along with sustained demand from core sectors and auto logistics.

 

Going forward, the management expects demand to strengthen in Q4FY26 across most commercial vehicle segments. Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry. 

 

With an optimised portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, Tata Motors is well-poised to unlock demand across segments, paving the way for continued success, the management said.

 

Meanwhile, for TMPV electric vehicle (EV) volumes stood at 6,906 units (up 24 per cent YoY) amidst an overall volume growth of 14 per cent YoY at 50,519 units in December 2025.

 

EV adoption accelerated significantly, supported by enhanced capabilities, longer range, lifetime battery warranty, and price parity with ICE counterparts, translating to a robust YoY growth.

 

The company said the momentum sparked by the rollout of GST 2.0 in late Q2FY26 gained further traction in Q3, resulting in several new records. The company achieved the highest-ever quarterly wholesales of 171,103 units, while retail sales/registrations crossed the coveted 200,000 units milestone for the first time.

 

Looking ahead, the management remains confident about the PV industry’s growth. With deliveries of recently introduced products commencing in Q4 and an exciting pipeline of launches and innovations on the anvil, Tata Motors is well poised to accelerate its growth trajectory in FY26, the management said. 

 

Brokerages view on December auto sales

 

Within CV space, growth was healthy across M&HCV as well as LCV segments with truck sub-segment within M&HCV domain driving the real growth charge. With GST rationalisation & pick up in government capex, CV volumes are likely to improve going forward (expectations of positive YoY growth in FY26E). CV volumes for the month came in ahead of expectations, ICICI Securities said in a note.

 

Volumes for the month were led by domestic sales tracking GST rate cuts, positive consumer sentiment and aptly supported by continued export demand traction. Going forward the PV segment is expected to benefit from GST rate cut reforms & 8th pay commission, the brokerage firm said.

 

Auto wholesales remained strong in December 2025 and surpassed our expectations for quite a few OEMs, Motilal Oswal Financial Services said. The brokerage firm attributes this strong demand momentum in wholesales to positive consumer sentiment led by GST rate cuts, strong marriage season in November 2025 after an equally strong festive season, relatively low base given weak demand macro last year. These factors resulted in robust wholesale growth for most OEMs across segments. 

 

Demand trends seem positive for all segments within CVs, with current demand momentum likely to remain intact in the coming months given the positive sentiment and favorable lead indicators, the brokerage firm said.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.