Tata Motors is optimistic about its passenger vehicle (PV) retail sales for the current quarter, expecting continued growth due to strong year-end demand, according to a senior company executive.
According to FADA data, festive season sales in October saw PV retail sales rise by 32% compared to last year, reaching 4,83,159 units. During the 42-day festival period, PV sales increased by 7% year-on-year to 6,03,009 units. In contrast, September had seen a 19% dip in sales, with only 2,75,681 units sold.
Despite a 6% drop in year-on-year PV sales during the July-September period, Tata Motors is confident that the third quarter will see a recovery. “We expect strong retail sales driven by festive and year-end demand,” said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles. He added that while wholesale industry numbers may be lower than retail, the aim is to reduce dealer inventory ahead of the new year.
The company is focusing on boosting retail sales with new model launches and marketing campaigns. Over the next two years, Tata Motors plans to launch models like the Harrier EV and Sierra EV, alongside upgrades to existing models.
Chandra also shared that the company aims to reach a 70% penetration level in the next two financial years, with a goal of 80% by FY30. However, he kept details of some upcoming models under wraps for now.
The automaker has also significantly reduced the number of vehicles dispatched to dealers, which has helped lower dealer inventory levels to less than 30 days, reducing their finance costs.
Chandra confirmed that Tata Motors will continue its focus on growing the electric vehicle (EV) market and improving cost-efficiency to stay competitive.
On the commercial vehicle side, Executive Director Girish Wagh mentioned that Tata Motors expects infrastructure spending to boost demand for trucks and buses in the coming months. He also revealed that the company will keep introducing new variants and value-added features to improve customer offerings.
For small commercial vehicles, Tata Motors is working on a three-pronged strategy to address volume challenges, Wagh said.
