EVs and CNG cars power Tata Motors in March with 14% increase in sales

Tata Motors has clocked a 14 per cent increase in sales as the carmaker recorded sale of 50,297 cars in March across India and other markets. The carmaker saw a sizeable chunk contributed by its electric cars and CNG vehicles during this period. Tata Motors ended the Financial Year 2023-24 with nearly 5.74 lakh cars sold in the passenger vehicle segment, a six per cent increase compared to 5.41 lakh units sold in the previous fiscal. This is the third straight year that the carmaker has improved its highest sales figure in the passenger vehicle segment.

Cars like Punch and Nexon SUV continue to contribute to Tata Motors' sales in March as well. Punch, its smallest SUV, is currently the leader in the segment. Nexon too has been India's favourite SUV for most part of last year. Tata recently launched the EV and CNG version of the Punch which also helped the carmaker to increase its sales. It is also expected to drive in the CNG version of Nexon. The duo will become the first two SUVs in India to get all type of powertrain, be it petrol or diesel, electric and CNG.

The versatility in Tata's lineup has helped the carmaker to gain massively in recent years. According to the carmaker electric and CNG vehicles have contributed 29 per cent of its overall sales last month. Tata Motors currently leads the EV segment in India with a lion's share of nearly 80 per cent. Tata thinks the trend will continue well into the new financial year too. Sailesh Chandra, Managing Director at Tata Motors Passenger Vehicles, said, "With sales of cars powered by traditional fuels (petrol and diesel) flattening, almost the entire incremental volume growth of FY24 is expected from rising sales of emission-friendly powertrains."

In the electric vehicle segment, Tata Motors clocked 6,738 units in March. It is a marginal four per cent increase over 6,509 units of EVs it sold during the same month last year, including exports. In the last three months of the financial year, Tata Motors sold 20,640 units of electric cars. The carmaker ended the financial year with 73,833 units of EVs, nearly 50 per cent more than what it did in the previous financial year.

The success of EVs and CNG vehicles helped Tata end FY2023-24 with 1.55 units of cars sold, including exports. This is 15 per cent more than what it achieved during the same period in last financial year. However, Tata could not improve its quarterly sales in the last three months compared to same period last year. Girish Wagh, Executive Director at Tata Motors, said, “In Q4 FY24, domestic sales at 1,04,922 units were marginally lower than Q4 FY23 sales of 1,12,145 units, which had benefitted from increased pre-buy due to BS6 Phase II transition."

Tata Motors hopes demand for passenger cars to remain strong in the ongoing financial year. It expects customer preference for safer and cleaner cars should contribute to double digit growth for EVs and CNG vehicles. However, it also thinks that high base effect may keep the growth rate restricted to single digit. Tata Motors plans to introduce four more electric cars in India this year with most anticipated models like Curvv and Harrier EV lined up for launch in the second half of 2024.