Festive Demand Pushes Passenger Vehicle Market Toward 5% FY Growth: Tata Motors

Domestic passenger vehicle sales are expected to end the current financial year with around 5 per cent growth, even as the first half saw a slight drop in demand. Tata Motors Passenger Vehicles MD and CEO Shailesh Chandra said the momentum built during the festive season has carried forward, setting up the industry for a strong finish.

Speaking during an analyst call, Chandra pointed out that April–September recorded a 1.6 per cent year-on-year decline. It was only during the festive period that the market bounced back. According to him, sales in the October–March window should grow in double digits.

He added that the sector saw 5 per cent growth in September and a sharp 17 per cent rise in October, thanks to festive buying. “The pent-up demand

still continues to overflow in November and December, and both months should be strong in business terms,” he said. With the early slump and the festive surge balancing out, the full-year growth “should be in the zone of 5 per cent or so,” he noted.

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Outlining Tata Motors’ plans, Chandra said the company intends to maintain its growth run by tapping into a healthy order pipeline and rolling out wider marketing campaigns to boost visibility and retail performance in the third quarter. The goal is also to keep inventories lean as the new calendar year begins.

“In addition to the growing traction for our portfolio, we will drive strong volume growth on the back of new product launches that will strengthen our portfolio,” Chandra said. He highlighted the upcoming Sierra as a key contributor to higher volumes and better profitability. The petrol variants of the Harrier and Safari, he added, will help the brand reach more customers and unlock fresh demand.

On the EV front, Tata Motors plans to keep up its pace with quicker product updates than its ICE lineup. The company also aims to widen EV adoption by improving charging access and taking steps that “expand consideration for EVs,” Chandra said.

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He noted that rising volumes, a richer model mix, GST benefits and tighter cost controls should support profitability. Alongside this, Tata Motors will continue long-term initiatives to strengthen its sales network and customer service, which Chandra described as a “force multiplier” for sustainable growth.

(With inputs from PTI)