Domestic PV sales set to exceed 5 million; Tata Motors set to tap growth opportunity

Tata Group Chairman, Mr. N Chandrasekaran, in the company's 2023-24 Annual Report, highlighted that India's domestic passenger vehicle market is poised to surpass the 5 million annual sales mark in the coming years, a significant increase from the 4.1 million vehicles sold last year. Tata Motors aims to capitalize on this growth by focusing on revenue growth, strong free cash flows, technology advancements, and brand leadership. The company plans to enhance its market position by investing in products, platforms, electrical and electronic architectures, and vehicle software. The EV business is a key focus area, with plans for multiple product launches, market development, charging network enhancements, and the introduction of new features. The PV business achieved its highest-ever turnover in FY24, with an annual revenue of US$ 6.28 billion (Rs. 52,353 crore), marking a 9.4% increase over FY23.

Mr. Chandrasekaran also mentioned the strategic demerger of Tata Motors into two listed entities: one for the commercial vehicle business and its related investments and another for the passenger vehicle businesses, including PV, EV, and JLR. This move aims to leverage synergies in EVs, autonomous vehicles, and vehicle software, thereby enhancing customer experience, employee growth prospects, and shareholder value. Additionally, JLR is set to launch a range of new products over the next three years, including the first electric Range Rover and all-electric Jaguar, as part of its strategy to become a premium luxury OEM. Mr. Chandrasekaran noted that while global geopolitical tensions persist, leading to supply chain disruptions, the economic outlook stabilizes with an estimated global growth rate of around 3% in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.