Tata Motors anticipates that the passenger vehicle sector would expand by 5-7% in the current fiscal year as opposed to 27% sales growth in the prior fiscal year due to a decline in pent-up demand. In order to maintain growth, the car manufacturer is reportedly aiming to launch new vehicles, such as CNG and electric models, while reinforcing its current line with fresh innovations.
What is the Tata Motors Managing Director saying?
With the exception of a few new releases in a few well-liked sports utility vehicle segments, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra, remarked that pent-up demand in the passenger vehicle market has now clearly gone down. He pointed out that the industry had a sharp increase of 27% year over year as compared to FY22, which he attributed to pent-up demand and low inventory levels.
“Growth would be slightly moderate in the range of 5 to 7% this year (2023–2024).” But I’m confident that growth will return to a double-digit rate after this fiscal year,” Chandra said. He continued by saying that the move to RDE (real driving emissions) could result in higher car pricing, which could have an impact on demand this fiscal year.
From Tata Motors’ perspective, he said, “We are getting ready by concentrating on demand generation through micro-market focus and actions to improve the conversion rates.” The company is expanding its line-up of CNG and electric vehicle models, according to Chandra, and both markets are anticipated to rise well this year.
“We ought to benefit from that. And naturally, we’re enhancing margins through a formalised cost-cutting programme,” he continued.
In terms of dispatches to dealers, Tata Motors claimed its best-ever year in FY23 with 5.4 lakh units. In contrast, the company’s wholesale sales increased by about 45% from FY22 to FY23. Chandra described the company’s intentions for new product introductions and fresh interventions in existing brands in order to maintain the excitement.
“We will introduce a CNG variation (of the Punch) with two-cylinder technology, which will be exclusive on the market…We also intend to introduce electric vehicles, so we are certain that these two items will be able to support the volume, he added. Chandra added that the business will also add new nameplates.
The Curvv and Sierra nameplates, which will be introduced, were displayed at the Auto Expo, he continued. There will be a sharp growth in the volume of EVs, Chandra continued. We are growing our portfolio in the CNG sector, so I believe we have a number of levers that will boost both our volumes and market share.
