Domestic passenger vehicle volumes to grow by 5% this fiscal: Tata Motors PV CEO

Domestic passenger vehicle volumes are likely to grow by around 5% this fiscal, with double-digit growth anticipated in the second half as pent-up demand remains robust even after the festive season, according to Tata Motors Passenger Vehicles MD and CEO Shailesh Chandra.

The April-September period this fiscal year witnessed a 1.6% year-on-year decline, and it was only the festive period that passenger vehicle sales rebounded in the domestic market.

“The sales volume in the October-March period should grow in double digits,” Mr. Chanda said during an analyst call. He noted that the industry witnessed a growth of 5% and 17% in September and October, respectively, due to festive demand. “The pent-up demand continues to overflow in November and December, and both months should be strong in business terms,” he added.

“So, overall, in the financial year, because the first half had seen a decline of 1.6% before the festive period, it should be in the zone of 5% or so,” Mr. Chandra said.

When asked about the company’s plans, he noted that the automaker aims to continue the growth momentum by leveraging its robust demand pipeline, supported by comprehensive marketing campaigns that will amplify brand visibility and maximise retail in the third quarter, ensuring lean inventories in the next calendar year.

“In addition to the growing traction for our portfolio, we will drive strong volume growth on the back of new product launches that will strengthen our portfolio,” Mr. Chandra said.

“The launch of the new Sierra will be one of the key drivers for volume increase and profitability improvement for the business, and petrol trims of Harrier and Safari will expand their addressable market and unlock volume potential in key markets,” he noted.

“In EVs, the company will sustain its growth momentum by strengthening its portfolio with more rapid product interventions compared to ICE,” Mr. Chandra said.

“At the same time, the automaker will drive mainstreaming through key actions to expand consideration for EVs, for example, by expanding charging infrastructure,” he added.

“As we grow our volumes, we will enhance profitability through operating leverage, enhanced mix on the back of new launches and GST impact, and we will accelerate our cost reduction efforts,” Mr. Chandra said.

“At the same time, the company will continue with structural actions to strengthen its network and customer service, which will act as a force multiplier driving long-term sustainable growth,” he added.