Tata Motors PV Expects Industry Sales to Grow Over 10% in FY27 Despite H2 Moderation

Tata Motors Passenger Vehicles Ltd (TMPV) expects India's passenger vehicle industry to grow more than 10% in FY27, led by a strong first half, before growth moderates to single digits in the second half on a higher base.

The automaker expects industry volumes to grow around 15-20% in the September quarter, helped partly by a favourable base. This should keep growth in a similar range for the first half, according to Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles.

“H2 onwards, given that there was a significant increase in demand post GST 2.0 in H2 of last financial year, it will have the high base effect,” Chandra said during a media call held to discuss the company's Q1 FY27 performance.

Growth in the second half could fall below 10%, but lower vehicle inventory across the industry compared with last year should provide room for volumes to expand, he said.

“At a full-year level, therefore, given that H1 is going to be significantly high in terms of growth rates... H2, even if it is in single-digit growth, it should be safely crossing 10%,” Chandra said.

PV Sales Start FY27 on Strong Note

The outlook follows a strong start to FY27 for the passenger vehicle industry. Domestic wholesales rose 25.9% year on year to a record 12.74 lakh units in the April-June quarter, according to the Society of Indian Automobile Manufacturers. The momentum continued in July, when dispatches rose 34.3% to 4.58 lakh units.

Utility vehicles remained the main growth driver in Q1, accounting for about 68% of PV sales. UV volumes grew 28.6%, while passenger car sales increased 21.3%. PV exports rose 8.8% to a record 2.22 lakh units despite disruptions to shipments to the Middle East.

SIAM attributed the Q1 growth to lower GST rates, softer financing costs, new model launches and a favourable base. It, however, flagged geopolitical developments and the monsoon as key factors to watch.

Tata Motors Grows Faster Than Industry

Tata Motors PV significantly outpaced the market during the June quarter. The automaker sold 1,82,574 cars and SUVs across domestic and international markets, up 46% from 1,24,809 units a year earlier. Domestic volumes increased 45% to 1,80,166 units.

Electric vehicles were a major contributor. Tata sold 34,467 EVs in Q1, up 112% year on year, while Punch and Nexon were among its key volume drivers.

Chandra expects Tata Motors to continue growing faster than the broader industry. “Even for the entire year we were twice the industry growth. Even in quarter 1 we have been twice the industry growth. And I am sure that this momentum should continue for us,” he said.

To sustain the momentum, Tata Motors plans to rely on new launches and product refreshes, while building on its position in faster-growing powertrains such as EVs and CNG. Chandra said the more immediate challenge is on the supply side, with capacity constraints limiting output of some models.