N Chandrasekaran, Chairman of Tata Motors, says the Indian passenger vehicle market is well “on track” to cross 5 million units in annual sales in the next few years.
Addressing the shareholders in the company's 79th annual report, Natarajan Chandrasekaran says that despite being the world's second-largest (automotive) market, it’s only one-sixth the size of the No.1 – China.
Chandrasekaran points out that India’s vehicle penetration, at about 30 vehicles per 1,000 population, is below global norms but is expected to rise. In his remarks to shareholders, he underscores Tata Motors' advantageous position to strengthen its market standing further and seize this growth opportunity.
“India is well on track to exceed the 5 million passenger vehicle sales mark over the next few years, up from the 4.1 million volumes clocked last year,” he asserts.
In the next phase of growth for the passenger vehicle business, the chairman of Tata Motors claims that the company will aim at market-beating growth, improving EBIDTA, positive free cash flows, enhanced customer experience, technology, and brand leadership.’
“The competitive intensity in this portfolio will remain high and the business will continue to invest in products, platforms, electrical & electronic architectures, and vehicle software to remain competitive,” he says.
The maker of Nexon and Safari says that the business will also focus on significantly improving customer experience and product quality.
“The EV business will focus on driving up penetration through multiple product launches, focus on market development, charging network enhancements, and continuing to introduce aspirational product features,” he adds.
Reviewing the passenger vehicle business, Chandrasekaran says the PV business set a record for the third successive year.
The company registered annual sales of 5.74 lakh units (up 6% vs FY23). Retail sales, based on the Vahan portal, were up 8.4%.
“A sharp focus on emission-friendly technologies improved the penetration of CNG and electric vehicles to 29% in the overall portfolio. In EVs, the business continued to lead the way with 70%+ market share,” he informs.
Tata Motors surpassed the cumulative EV production of 150,000 vehicles in FY24, a milestone achieved by only a handful of manufacturers globally. In the last financial year alone, it sold 73,844 EVs, up 47.5% compared to FY23.
The passenger vehicle business of Tata Motors recorded its highest-ever turnover with an annual revenue of Rs 52,353 crore, up 9.4%, during the year.
N Chandrasekaran points out that the passenger vehicle business became more profitable during last year, with a healthy improvement of 100 bps in EBIT, and continued to be free cash flow positive.