India might see a record sale of passenger vehicles in FY23. According to Tata Motors Passenger Vehicles Managing Director (MD) Shailesh Chandra, over 38 lakh units of passenger vehicles could be sold in this financial year. Although this growth momentum is not expected to carry over to 2023-24 with pent-up demand already being released.
Chandra told analysts that the growth rate in FY24 would also depend on the impact of a new set of regulations such as BS-VI phase II and new safety regulations kicking in next year. He also said that in the third quarter of the ongoing fiscal there could be a moderation in the offtake of passenger vehicles
Shailesh Chandra who is also the MD of Tata Passenger Electric Mobility Ltd said that the first half of FY23 was very strong for the PV industry with sales of nearly 19 lakh vehicles. “Typically you would see a 48:52 kind of a ratio between H1 and H2. This time, you’re going to see nearly 50:50 kind of a ratio. So, it’s going to be a very strong year, highest-ever industry volume is what we are going to witness in this financial year, possibly going up to 3.8 million-plus,” he said.
According to the Society of Indian Automobile Manufacturers (SIAM) in 2021-22, PV sales in India were at 30,69,499 units. The highest PV sales in India were in 2018-19 when 33,77,436 units were sold.
On the remaining period of the FY23, Chandra said, “I don’t see right now, the demand really going down, except that you’d see moderation on offtake this quarter, and then it should again pick up in the next quarter not to the full extent, I would say, because of the transition from BS VI Phase I to Phase II, but still, it will be good enough to do similar kind of volume as we have seen for the H1.”
He added, “We believe that industry will sustain the momentum that we have been seeing in the past quarters. The focus in this quarter for the industry would be retail. There will be moderation in offtake as all the players would like to reduce the channel inventory as we are approaching the calendar year end.”
On the semiconductor, Chandra said, “Last quarter there were 10 lakh supplies in the industry and this quarter also, we don’t see a major issue, because of semiconductor supplies.”
On FY24 growth prospects, Chandra said, “I would not expect that, because a lot of pent-up has got released already in H1, and therefore now it will be more triggered through the new launches. So I think FY24, I would just hold my comment right now, because we have also (to) then triangulate based on what projections we are going to see from various agencies.”
Chandra on electric vehicles said that Tata Motors posted its highest-ever quarterly sales at over 12,000 units, with a market share of 87 per cent, in the second quarter.
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