Passenger car gross sales in India might hit a file of over 38 lakh models in FY23 however the sturdy progress momentum will not be anticipated to hold over to 2023-24 with pent-up demand already been launched, in keeping with Tata Motors Passenger Vehicles Managing Director Shailesh Chandra.
There might be a moderation on offtake of passenger autos (PVs) within the the third quarter of the continued fiscal and choosing up once more within the fourth quarter, however the progress fee in FY24 would additionally rely upon the affect of recent set of rules reminiscent of BS VI part II and new security rules kicking in subsequent 12 months, he informed analysts.
The first half of FY23 was very sturdy for the PV business with “nearly 1.9 million vehicles”, mentioned Chandra who can be the Managing Director of Tata Passenger Electric Mobility Ltd.
“Typically you would see a 48:52 kind of a ratio between H1 and H2. This time, you’re going to see nearly 50:50 kind of a ratio. So, it’s going to be a very strong year, highest-ever industry volume is what we are going to witness in this financial year, possibly going up to 3.8 million-plus,” he mentioned.
In 2021-22, in keeping with Society of Indian Automobile Manufacturers (SIAM), PV gross sales in India had been at 30,69,499 models. The file for highest PV gross sales in India was in 2018-19 when 33,77,436 models had been offered.
On the outlook for the remaining interval of the 12 months, he mentioned, “I don’t see right now, the demand really going down, except that you’d see moderation on offtake this quarter, and then it should again pick up in the next quarter not to the full extent, I would say, because of the transition from BS VI Phase I to Phase II, but still, it will be good enough to do similar kind of volume as we have seen for the H1.” In Q3, he mentioned, “We believe that industry will sustain the momentum that we have been seeing in the past quarters. The focus in this quarter for the industry would be retail. There will be moderation in offtake as all the players would like to reduce the channel inventory as we are approaching the calendar year end.” Also, he mentioned, semiconductor provides have been sturdy and because of this within the “last quarter there were 1 million supplies in the industry and this quarter also, we don’t see a major issue, because of semiconductor supplies”.
Asked if FY24 might witness an identical form of progress seen in FY23, Chandra mentioned, “I would not expect that, because a lot of pent-up has got released already in H1, and therefore now it will be more triggered through the new launches.” There shall be segments, largely the entry section, which could get impacted because of value will increase due to new rules such because the BS VI Phase II actual time driving emissions and the security rules associated to 6 airbags from October 2023, he added.
“So I think FY24, I would just hold my comment right now, because we have also (to) then triangulate based on what projections we are going to see from various agencies,” he added.
On electrical autos, Chandra mentioned, Tata Motors posted its highest-ever quarterly gross sales at over 12,000 models, with a market share of 87 per cent, within the second quarter.
The newly launched Tiago EV crossed 10,000 bookings on the primary day of launch. It was launched on September 28 with introductory costs starting from Rs 8.49 lakh to RS 11.79 lakh (ex-showroom).
