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% 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. 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, he said.
“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 said 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 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.