Tata Motors: Growth in the passenger vehicle category could slow this fiscal year to 5-7%

5 Jun 2023 , 11:27 AM

According to a top corporate executive who talked to PTI, Tata Motors anticipates that the growth of the passenger vehicle market would slow to 5-7% in the current fiscal year from 27% sales growth in the prior fiscal year due to a decline in pent-up demand. The auto giant is trying to launch new goods, such as CNG and electric vehicles, in order to maintain growth, while also expanding its current offering with fresh additions.

With the exception of a few new releases in a few well-liked sports utility vehicle classes, Tata Motors managing director for passenger and electric cars Shailesh Chandra highlighted 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. According to him, the transition to RDE (real driving emissions) could result in a rise in car pricing, which could have an effect 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.’

In addition to adding more EV and CNG cars to its lineup, according to Chandra, the business expects this year to see strong growth in both markets.

‘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. The company’s wholesale sales increased by almost 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.

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