Tata Motors expects domestic PV industry to surpass 2019 volumes this fiscal

Tata Motors is expecting the domestic passenger vehicle industry to surpass the sales figures of 2019 this fiscal year. In the 2019 fiscal year, the domestic passenger vehicle industry registered sales of 34 lakh units. Tata Motors said as demands for vehicles are back on the track due to fewer Covid-related disruptions in the last two years, the sales numbers are expected to rise this year. According to a PTI report, Tata Motors is expecting a better business environment this year even as the semiconductor shortage continues to challenge the auto industry worldwide.

Tata Motors also added that an increase in prices of commodities is another factor that might affect auto companies' profitability this year. Tata Motors Managing Director Passenger Vehicle and Electric Vehicles Shailesh Chandra was quoted saying, “Talking about FY23, on the projections that we have seen from various agencies which are estimating volume, towards a possibility of the industry surpassing the peak that we've seen in FY19 of 3.4 million (units)."

Chandra also highlighted the issue of the global semiconductor crisis due to Covid-related restrictions and other issues which according to him is restricting the company to work at its full potential, however, he said he is hoping that this year there won't be any such disruptions and the crisis may ease out. “So as far as Tata Motors is concerned, certain electronic components will remain a challenge, but we are taking multiple actions to mitigate this risk in terms of creating alternatives, additional resources, close coordination with semiconductor suppliers and at times open market price also," he said.

Tata Motors shared that the company is also taking major steps to reduce the cost of structures across the organisation. “We will continue to innovate, focus on value engineering and we have identified nine levers to improve our profitability in the next financial year," Chandra said in the report. He further stated the demand for electric vehicles (EVs) and CNG models is also increasing in the domestic market due to a rise in fuel cost. With demand for EVs remaining very strong, Tata Motors is fast ramping up the supplies, he added.