When it comes to the present and future growth path of its passenger vehicle (PV), electric vehicle (EV), and commercial vehicle sectors, Tata Motors, which gave a thorough presentation on its Investor Day on June 7, 2023, appears to be checking all the correct boxes. This is true despite increased competition in all car segments in the Indian auto market.
Tata Motors has attained all-time highs in terms of operational and financial indicators. In FY2023, the company sold a record number of 538,640 PVs, an increase of 45% over FY2022’s 370,372 units. PV market share increased from 12.1% in FY2022, 8.2% in FY2021, and 4.8% in FY2020 to 13.9% in FY2023 while revenues soared five times to Rs 47,868 crore and produced the highest-ever EBIDTA of Rs 3,085 crore.
Tata Motors’ five-pronged strategy
According to the business, a five-pronged strategy – an aspirational product range, EV network and ecosystem expansion, front-end reimagination, operational debottlenecking, and product quality refinement – is what has led to the steady growth of Tata Motors PVs.
One of Tata Motors’ “New Forever” range’s distinguishing features is its striking design. The range also benefits from upgraded passive and active safety attributes and ADAS features, as well as from an intelligent and integrated infotainment and driver information system (HMI), an upgraded connected car ecosystem, and technological advancements on the current engine portfolio for refinement.
Variants and special editions have been regularly released in an effort to “sustain interest and address new microsegments of customers” and “keep the portfolio fresh.” According to Tata Motors, the premiumization of the portfolio (Harrier, Nexon, Altroz, and Nexon EV) is being driven by the “Dark” series.
Making the EV advantage clear and preparing new goods
Tata Motors, one of the few PV OEMs with a variety of powertrains including electric, petrol, diesel, and compressed natural gas, is emphasising its first-mover advantage in electric cars (EVs). Sales of electric vehicles have surpassed 75,000 units cumulatively for the company between the launch of the Nexon EV in January 2020 to the end of May 2023.
The Nexon EV accounted for 64% of sales of this total, followed by the Tigor/XPres-T sedan, which sold 16,759 units and held a 24% market share, and the recently introduced Tiago EV, which sold 8,358 units and held a 12% market share. At Rs 869,000, the Tiago EV is the most reasonably priced EV in Tata’s lineup as well as India, which is assisting in the growth of the EV industry.
Commercial vehicles as a driver of growth in FY2024
Tata Motors appears to be cautiously bullish about the demand for commercial vehicles in FY2024. The CV industry experiences growth in four-year cycles, and in FY2023, total M&HCV and LCV sales reached 962,468 units, up 34% from FY2022’s 716,566 units. Despite being slightly below the industry’s greatest-yet performance in FY2019, when it crossed a million units, this is the sector’s best result in four years.
In FY2023, Tata Motors sold 413,359 CVs on the domestic and international markets combined, an increase of 16% from FY2022’s 356,972 units. This included 20,222 units exported (down 22%) and 3,93,317 units sold on the domestic market (up 22%).
