Domestic passenger vehicle volumes, which grew minimally at 1.6 per cent year-on-year in the April-September period before picking pace in the festive period, are expected to grow by around 5 per cent this fiscal, as per a Tata Motors’ senior official.
Pent-up demand, Goods and Services Tax (GST) rate cut by the Centre, and festive season sales clubbed to push auto sales volume in the months of September and October, leading to the industry clocking a growth of 5 per cent and 17 per cent, respectively.
“Overall, in the financial year, because the first half had seen a decline of 1.6 per cent before the festive period, it should be in the zone of 5 per cent or so,” said Shailesh Chandra, Tata Motors Passenger Vehicles MD and CEO.
With pent-up demand continuing to overflow in November, business is expected to be strong in December, and sales volume to grow in double digits in the October-March period, he added during an analyst call.
In electric vehicles (EVs), Tata Motors will sustain its growth momentum by strengthening its portfolio with more rapid product interventions compared to ICE, Chandra said.
Also Read: Tata car sales hit 1 lakh in festive period
“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,” Chandra said, adding that expanding charging infrastructure will also drive mainstreaming.
With the launch of the new Sierra and petrol trims of Harrier and Safari, the company hopes to expand their addressable market and unlock volume potential in key markets, he noted.
“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,” Chandra said.
Also on the cards for the automaker is 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, the PV CEO informed.
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