‘Single-digit growth optimistic in FY14’
Speaking to FE, Ranjit Yadav, Tata Motors’ recently appointed president of PV division, said that subdued consumer demand is likely to push sales over the next few quarters as well. “The next few quarters will be challenging and single-digit growth is optimistic in FY14 given the market conditions. The industry is under stress, I think we can all see that, but utility vehicles have been an exception. We believe we will come out stronger than what we went in with,” he said.
The modest outlook comes after the Mumbai-based automaker saw flat PV volume growth in April-December FY13 at 2.48 lakh units while the PV market rose 8.37% to 1.95 million units in the same period. Rising fuel prices, high interest rates and slowing economic growth has led car sales to fall below industry projections for most of the year resulting in inventory pile-ups (mostly petrol cars) and prompting production cuts.
Recently, in an interview Maruti chairman RC Bhargava had said that the company is likely to grow at around 6-8% in FY14, similar to the growth projections for the industry. The growth next fiscal is expected to come from increased diesel car capacity and an expected rise in demand for petrol cars as diesel prices progressively go up.
Tata Motors, which went through
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