Tata Motors to continue focus on multiple fuel options, hybrid not on the cards
Tata Motors, has made smart gains in its passenger vehicle business and has successfully regained lost grounds. In fact, the company’s bet on offering multiple fuel options – petrol, diesel, CNG and electric – has helped it achieve around 14 percent market share.
The company’s passenger vehicle wholesales for April-December 2022 (FY2023) was 408,087, closely behind Hyundai Motor India with 419,839 units. The two carmakers have been closely competing for the number two position over the past few months. In fact, in Q3 FY2023, Tata Motors reported consolidated net profit of Rs 2,957 crore, its first quarterly profit after 2 years.
But unlike many competitors, who are ditching diesel and introducing petrol hybrid models, Tata Motors has no such plans.
In a response to whether Tata Motors is looking to introduce hybrid model and stop diesel variants, P Balaji, CFO, Tata Motors said that the company had no plans to introduce hybrid models, which is the case for some competitors as a way to meet the emission norms. Tata Motors is focusing on electrification where it has seen great acceptance. Coming to diesel, there was no plans to discontinue the option.
Going forward, the OEM is cautiously optimistic on further improving its market position and achieving sustainable growth. The aim is to focus on improving finances and reducing debt.
In terms of investment in R&D, Balaji said that the company continues to make sizeable investment towards future product and technology development. It has already earmarked Rs 31,000 crore worth of investment – Rs 25,000 crore for Jaguar Land Rover, and Rs 6,000 crore for Tata Motors’ – which is helping it meet customer, regulatory and market demand.
Coming to commercial vehicle sales, it is seeing improved traction and better realisation in the domestic market, but exports to SAARC remains a bit challenging, it is hopeful that growth will return to these markets.