Tata Motors optimistic about domestic CV sales crossing the peak by 2025 | The Financial Express

Tata Motors optimistic about domestic CV sales crossing the peak by 2025

In terms of concern, there has been a slowdown in the export market, as well as an increase in interest rates in the domestic market. Tata Motors is carefully calibrating the situation and formulating long-term strategies.

Tata Motors optimistic about domestic CV sales crossing the peak by 2025

Tata Motors is now focusing on accelerating its commercial vehicle retail sales and is aggressive about tapping demand as the domestic M&HCV segment clocked a robust recovery in passenger carriers, improving fleet utilisation, pick up in road construction projects and increase in cement consumption. 

P Balaji, CFO, Tata Motors said that “The good part is M&HCV is trending is in the right direction it is steadily picking up momentum. We do not see any trends of a slowdown in the I&LCV and SCV segment, it could just be in pockets.”

In terms of outlook, he said that “by 2024-2025 we expect the CV industry to cross the peak volumes,” in the domestic market notwithstanding a slowdown in exports. 

However, Balaji pointed out that the freight rates have increased, which led to an improvement in profitability for fleets and transportation. In terms of concern, there has been a slowdown in the export market, as well as an increase in interest rates in the domestic market. Tata Motors is carefully calibrating the situation and formulating long-term strategies.

“We are focusing on providing the best products to our customers, and also are open to going back to the design stage for products which are not doing well in the market,” added Balaji.

Interestingly, the company has now moved from reporting its wholesale market share to retail market share based on Vahan. During Q2 FY2023, the company reported domestic wholesale of 93,600 units, up 19 percent, and retails of 94,900 units, up 23 percent YoY respectively.  When asked about retail discounting practices in the commercial vehicle segment, Balaji said that Tata Motors’ remains focused on improving retail volumes and increase in raw material prices is seeing rationalisation of the practice. It is coming down on a month-on-month basis.

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First published on: 09-11-2022 at 19:03 IST