Domestic PV sales set to exceed 5 million mark, Tata Motors geared up to tap into growth opportunity, says Tata Group Chairman N. Chandrasekaran

Tata Motors poised to capitalize on India's growing passenger vehicle market, focusing on revenue growth and EV penetration.

Domestic passenger vehicle segment is expected to cross the 50 lakh-mark of annual sales over the next few years and Tata Motors is geared up to tap into this growth opportunity, according to Tata Group Chairman N. Chandrasekaran.

In a message to the company's shareholders in Annual Report for 2023-24, he noted that the company will focus on revenue growth and strong free cash flows across its businesses going ahead. "India is well on track to exceed the 5 million vehicle sales mark in passenger vehicles over the next few years from the 4.1 million volumes clocked last year," Mr. Chandrasekaran said.

India's vehicle penetration, at about 30 vehicles per 1,000 population, is well below global norms and is expected to continue to increase, he noted.

"Tata Motors is well placed to further strengthen its market position and tap into this growth opportunity," he stated.

Elaborating on the passenger vehicle segment, he stated that in the next phase, the business will focus on driving revenue growth, improving EBITDA, strong free cash flows, technology and brand leadership.

Apart from vehicular sales, the business will also focus on vehicle-linked businesses like spares, digital and smart mobility solutions which will help reduce the volatility of the vehicle sales business, he added. This should help drive consistent value accretive growth in the coming years, Mr. Chandrasekaran said.

The competitive intensity in this portfolio will remain high and the business will continue to invest in products, platforms, electrical & electronic architectures, and vehicle software to remain competitive, he stated.