Pentup demand is over, economic market back to fundamentals for growth'

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility shared this view on the year gone by and about the company's plans to outpace the market with a strong SUV portfolio and multi-powertrain strategy. Ketan Thakkar brings you the story.

TATA MOTORS, INDIA'S largest automobile company by revenues has been consistently outpacing the market and grabbing market share. With a wide product portfolio starting with a compact hatchback to a premium SUV, the company has crossed half a million unit sales annually for the first time ever.

The maker of Nexon and Safari is set to end 2022 with its highest ever volumes and market share and a profitable operation that is going to reinvest for future growth. We spoke with Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

What is your view on the year 2022 for the industry?

The last two calendar years were impacted by Covid-19 and a shortage of semiconductor supplies. Despite this the industry managed the situation well. We have seen four consecutive quarters of a healthy demand momentum, supported by improved supplies, which will help the industry to hit a new peak this calendar year of about 3.7 million units. This is very healthy growth over the three million units the industry sold in 2021.

The reserve bookings were well supported by the improved supplies to cater to the pent-up demand and the series of new SUV launches ensured that the demand momentum continued. Even as the market posted healthy numbers, there were a series of headwinds right from uncertain chip supplies, rising commodity prices especially in the first half, increase in fuel prices - both CNG as well petrol prices - which had an impact on the entry level segment.

Despite these headwinds, there was enough tailwind to offset the challenges faced by vehicle makers which will help the industry on a record high.

What your views on the Tata Motors performance?