New Delhi, Oct. 15 -- Tata Motors, once India's leader in electric buses, has seen its sales plunge more than 80% this year, selling just 213 units between January and September. A global shortage of rare earth magnets and the company's cautious approach to government tenders have stalled its momentum, giving rivals a chance to capture market share.

The shift comes on the heels of Tata Motors' recent restructuring. The demerger, effective 1 October 2025, separated its commercial vehicle business into TML Commercial Vehicles Ltd (TMLCV), while passenger vehicle operations continue under Tata Motors Passenger Vehicles Ltd.

According to two industry executives, Tata Motors held back on applying for many tenders and focused instead on deliv...