Passenger vehicle segment growth may moderate to 5-7 per cent this fiscal: Tata Motors

  • In an analyst call, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra noted that pent-up demand in the passenger vehicle segment has now clearly gone down, barring certain new launches in a few popular sports utility vehicle segments.

Livemint
Published4 Jun 2023, 05:19 PM IST
Tata Motors reported its best ever year in terms of dispatches to dealers at 5.4 lakh units in FY 23
Tata Motors reported its best ever year in terms of dispatches to dealers at 5.4 lakh units in FY 23

Tata Motors expects the passenger vehicle industry to grow to 5-7 per cent in the current financial year as compared with 27 per cent sales growth in the last financial year with dip in pent-up demand. According to a top company executive, the auto major is looking to introduce new products including CNG and electric models, while bolstering its existing range with new interventions in order to sustain growth, 

In an analyst call, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra noted that pent-up demand in the passenger vehicle segment has now clearly gone down, barring certain new launches in a few popular sports utility vehicle segments.

He noted that due to pent-up demand and low inventory levels last fiscal, the industry reported a steep growth of 27 per cent year on year as compared with FY22.

"This year (2023-24)...growth would be slightly moderate in the zone of 5 to 7 per cent. But I'm sure that beyond this financial year, the growth will come back to a double-digit number," Chandra said.

He added that there could be an impact on the demand this fiscal on account of increase in prices of vehicles due to the RDE (real driving emissions) transition.

"From Tata Motors' side, the way we are preparing ourselves is to focus on demand generation through micro-market focus and actions to improve the conversion rates," he noted.

Chandra also said that the company is also growing its portfolio in terms of CNG and EV models with both segments expected to see good growth this year.

"We should be the beneficiary of that. And of course, we're driving margin improvement through an institutionalised cost-reduction initiative," he added.

In FY23, Tata Motors reported its best ever year in terms of dispatches to dealers at 5.4 lakh units. The company's wholesales, on the other hand, grew around 45 per cent year on year as compared with FY22.

Outlining the company's product related plans, Chandra said it would keep the excitement up with new interventions in existing brands and new product introductions.

"We are going to bring a CNG variant (of Punch) with the twin cylinder technology and this is going to be unique in the market...We are also planning to bring EVs, so we are very confident that these two products will be able to sustain the volumes," he noted.

Besides, the company is going to add new nameplates, Chandra said.

"We have showcased that in Auto expo, Curvv, Sierra, these are new nameplates, which are going to get launched," he added.

Chandra further said: “There's going to be a steep increase in the EV volumes. We are expanding our portfolio in the CNG segment, so I think we have several levers, which are going to increase our volumes, as well as market share.”

(With inputs from PTI)

Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.

MoreLess
First Published:4 Jun 2023, 05:19 PM IST
Business NewsAuto NewsPassenger vehicle segment growth may moderate to 5-7 per cent this fiscal: Tata Motors

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    152.30
    03:58 PM | 5 NOV 2024
    5.35 (3.64%)

    Bharat Electronics share price

    286.15
    03:59 PM | 5 NOV 2024
    2.1 (0.74%)

    Bank Of Baroda share price

    257.80
    03:59 PM | 5 NOV 2024
    5.05 (2%)

    State Bank Of India share price

    849.20
    03:59 PM | 5 NOV 2024
    19.35 (2.33%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,548.10
    03:58 PM | 5 NOV 2024
    -82.6 (-5.07%)

    Torrent Power share price

    1,708.00
    03:29 PM | 5 NOV 2024
    -88.75 (-4.94%)

    PB Fintech share price

    1,640.20
    03:57 PM | 5 NOV 2024
    -72.55 (-4.24%)

    Tube Investments Of India share price

    4,180.70
    03:58 PM | 5 NOV 2024
    -179.4 (-4.11%)
    More from Top Losers

    HFCL share price

    127.85
    03:47 PM | 5 NOV 2024
    8.5 (7.12%)

    Jindal Saw share price

    326.10
    03:29 PM | 5 NOV 2024
    16.15 (5.21%)

    Adani Energy Solutions share price

    1,014.65
    03:54 PM | 5 NOV 2024
    49.25 (5.1%)

    Oil India share price

    495.45
    03:54 PM | 5 NOV 2024
    23 (4.87%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,255.000.00
      Chennai
      80,261.000.00
      Delhi
      80,413.000.00
      Kolkata
      80,265.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Auto News

        HomeMarketsPremiumInstant LoanMint Shorts