Tata Motors Faces Margin Pressure Amid Cost Challenges

Tata Motors is facing challenges with its internal combustion engine (ICE) vehicle margins due to rising costs and a weak model mix. Despite efforts to cut costs, inflation, particularly in steel, is straining profits. The company anticipates a modest improvement in margins but expects them to remain subdued throughout the year. In contrast, the electric vehicle (EV) segment is thriving, showing increasing profitability. With a net profit drop of 30% in Q1 FY26 and a slight revenue decrease, Tata Motors is focusing on better models and potential price hikes to boost margins.