Tata Motors Thrives Amid Year-End Demand Surge

Tata Motors anticipates sustained growth in passenger vehicle sales for the quarter, driven by year-end demand and festive season effects. Aiming for significant retail growth through new model launches, the firm is also focusing on inventory and cost management to boost efficiency and mainstream EV adoption.

Tata Motors is optimistic about its passenger vehicle sales continuing their upward trend in the present quarter, bolstered by year-end demand and festive season impacts, as per a senior company executive.

According to the Federation of Automobile Dealers Associations (FADA) data, festive demand has helped PV retail sales jump by 32% year over year to 4,83,159 units in October. The segment saw a 7% annual increase, hitting 6,03,009 units during the 42-day festival period this year.

While September witnessed a 19% decrease in PV retail sales year-on-year, with only 2,75,681 units sold, Tata Motors saw a decrease in its PV volumes by 6% YoY to 1,30,500 units during the July-September timeframe due to lukewarm demand. Planning ahead, Tata Motors Passenger Vehicles MD Shailesh Chandra, in a recent analyst call, expressed expectations for robust retail in the third quarter, driven by festivities and year-end demand. He noted that industry wholesale might trail behind retail, aiming to reduce channel inventory before the new year.

To catalyze growth, Tata Motors plans to introduce various models, including the Harrier EV and Sierra EV, alongside other upgrades over the next couple of years. The automaker has also strategically slashed dispatches to dealers, effectively lowering inventory levels to under 30 days for most dealers, thus reducing the finance costs. This effort aligns with Tata's goal to mainstream EV usage through specific market development and ecosystem strategies, along with continued cost-reduction efforts to maintain competitiveness. Separately, Tata Motors Executive Director Girish Wagh elaborated on the commercial vehicle sector, anticipating increased infrastructure spending to spur consumption and upcoming demand.

For small commercial vehicles, Tata Motors has adopted a three-pronged strategy to address challenges in volume sales, focusing on enhancing its value proposition through new variants and strategic initiatives.

(With inputs from agencies.)