The seven-model portfolio Tata Motors sees demand moderate to single digit in a month which saw the launch of the Altroz CNG.
01 Jun 2023 | 5129 Views | By Ajit Dalvi
Tata Motors’ passenger vehicle sales continue to maintain their growth trajectory albeit growth has moderated last month to single digit. In May 2023, the company despatched a total of 45,984 units, which is a 6% year-on-year increase (May 2022: 43,392 units). Month on month, there is a decline of 2.38% ...
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Tata Motors’ passenger vehicle sales continue to maintain their growth trajectory albeit growth has moderated last month to single digit. In May 2023, the company despatched a total of 45,984 units, which is a 6% year-on-year increase (May 2022: 43,392 units). Month on month, there is a decline of 2.38% compared with April 2023’s 47,107 units.
The company, which retails seven passenger vehicles – Altroz, Tigor, Tiago, Nexon, Punch, Harrier and the Safari – in the domestic market, is currently ranked No. 3 after Maruti Suzuki India and Hyundai Motor India.
Tata Motors has capitalised on the surging demand for its SUVs, particularly the Nexon and the Punch which are currently the best-selling and the No. 4 SUVs in India.
May 2023 was quite a newsy month for the company, be it the announcement on May 5 that it has sold over 10,000 Tiago EVs since January 2023, the rollout of the 200,000th Punch on My 12, just 20 months after the compact SUV’s launch or the market introduction of the Altroz CNG at Rs 755,000.
Tata Motors is betting big on its CNG-powered cars and the premium Altroz hatchback has become the the third car from the Tata Motors PV stable, after the Tiago and Tigor, to get the CNG treatment. Among the car’s highlights is the dual-cylinder setup that enables two 30-litre tanks positioned under the boot floor to free up storage space.
In FY2023, the company saw retails of 40,323 CNG cars, which a 471% YoY increase albeit on a low-year-ago base (FY2022: 7,059). What is creditable is that despite its recent entry into the CNG market, Tata Motors has already grabbed 13% of the CNG car market. With the Punch CNG also in the offing, Tata Motors has outlined an annual sales target of 150,000 CNG cars in the coming years.
The EV advantage . . . and new rivals
Where Tata Motors continues to have a strong advantage is in the fast-growing electric vehicle market. With four products – Nexon EV, Tigor EV and Xpres-T (for fleet buyers) and the sub-Rs 10 lakh Tiago EV – the company is driving home the gains.
In May, the company despatched an estimated 5,805 EVs, which takes the total of the first two months of FY2024 to 12,321 units.
Nevertheless, in India’s expanding electric car and SUV market, Tata Motors, which had commanded an 80% EV market share, is beginning to see competition. As per Vahan retail sales data for April-May 2023, Tata Motors has sold 10,274 units which gives it a market share of 77%, followed by Mahindra & Mahindra (889 units and 6.64% share), and MG Motor India (779 units / 5.82% share).
Mahindra & Mahindra has moved into second place, which is clearly an impact of the growing demand for the all-electric XUV400, the first real challenger to the Nexon EV. And MG Motor India’s recently launched MG Comet EV, which has received a positive market response in its first month of sale, goes head to head with the Tiago EV.