Tata records highest-ever annual sales in FY2023 led by Nexon, Punch, Harrier

Tata Motors reported its highest-ever annual sales in FY2023 as the company sold 538,640 passenger vehicles between April 2022 and March 2023, growing by 45.43 per cent year-on-year when compared to 370,372 units sold in FY2022. The automaker continues to be the third largest player in the PV segment after Maruti Suzuki and Hyundai. Tata’s growth was driven by its SUVs - Nexon, Punch, Harrier and Safari - which recorded their highest-ever annual sales respectively, contributing over 66 per cent to the total volume.

Tata Motors’ domestic passenger vehicle sales (ICE + EV) stood at 44,044 units in March 2023, a growth of four per cent over 42,293 units sold in March 2022. Exports contributed 181 units to overall volumes last month, growing by 5 per cent compared to 173 units in March last year. Meanwhile, electric vehicle sales grew 89 per cent in the last month to 6,509 units, from 3,452 units in March 2022.

Speaking on ending the fiscal on a high, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd. said, “FY23 has set a new record for passenger vehicle sales in India. The steep growth witnessed by the industry was driven by post-COVID pent-up demand in the early part of the year, the launch of several new vehicles and the easing of the semiconductor shortage. While SUVs and EVs led this growth, customers’ rising preference for safe vehicles and smart technology features was equally pronounced. Tata Motors scaled a new sales peak by posting its highest-ever annual domestic sales of 5,38,640 units, achieving a robust 45 per cent sales growth over FY22 and registering its third successive year of industry-beating growth. All four SUVs – Nexon, Punch, Harrier and Safari, recorded their highest-ever annual sales, contributing a substantial 66 per cent of the total volume.

Tata Motors continued to lead the EV (domestic + exports) segment in FY2023 with 50,043 units sold, an impressive hike of 154 per cent in volumes over 19,668 units sold in FY2022. Sales grew by 70 per cent in the last quarter of FY2023 (January to March 2023) for EVs, up from 19,668 during the same period a year ago.

“Being the leader in the fast-growing EV segment, we continued to accelerate both its adoption as well as the development of its enabling ecosystem. Tata Motors crossed the significant landmark of 50,000 EV sales in FY23, its highest ever, to post a significant growth of 154% over FY22. In addition, we also recorded the highest-ever quarterly and monthly EV sales of 15,960 (Q4FY23) and 6,509 (Mar’23) respectively. EV penetration in our portfolio continued to increase from ~7 per cent (Q1FY23) to ~12 per cent (Q4FY23) of our total sales," Chandra added.

Tata Motors expects the demand to remain strong for passenger vehicles in the new financial year with the demand for EVs growing rapidly as well. The automaker commands an 85 per cent market share in the passenger EV segment in India. That said, Chandra did say that the growth rate of the PV industry “may moderate due to a strong base effect as well as macro factors including interest rates, rising inflation, and the cost impact from progressive regulatory norms."

For Commercial Vehicle (CV) sales, Tata Motors’ domestic volumes stood at 393,317 units in FY2023, growing by 22 per cent over 322,182 units sold in FY2022. CV exports stood declined by 42 per cent in the last fiscal to 20,222 units from 34,790 in FY2022. CV sales in March remained nearly flat at 45,307 units, up by 2 per cent from 44,425 units in March 2022. The passenger carrier segment showed the strongest growth for Tata Motors last month with 3,973 units sold, a hike of 47 per cent year-on-year over 2,703 units sold in March 2022. Meanwhile, the medium and heavy vehicle segment grew by 10 per cent with 10,963 units sold in March. CV exports in March 2023 stood at 1,516 units, a decline of 42 per cent over 2,625 units shipped in March last year.

Speaking about CV sales, Girish Wagh, Executive Director, Tata Motors Ltd. said, “Tata Motors commercial vehicle domestic sales in Q4 FY23 at 1,12,145 units was 22 per cent higher than the previous quarter (Q3 FY23) and ~2 per cent higher than the same quarter, last year (Q4 FY22). This growth was driven by the robust demand for heavy trucks required to service the strong infrastructure push by the government plus increased activity in e-commerce, construction, and mining. Higher replacement demand, advance buying in anticipation of price hikes, and year-end buying to claim depreciation benefits, further buoyed the demand towards the end of the quarter. As a result, M&HCVs grew by over 33 per cent vs Q3 FY23, while being 18% ahead of Q4 FY22. However, the demand for small and light commercial vehicles continued to be impacted due to high interest rates and high base effect. Overall, Tata Motors CV domestic business grew ~22 per cent in FY23 vs FY22.