PV sales in slow lane

New Delhi: Tata Motors expects the passenger vehicle (PV) industry growth to moderate to 5-7 per cent in the current financial year as compared with 27 per cent sales growth in the last financial year with dip in pent-up demand, according to a top company executive.

In order to sustain growth, the auto major is looking to introduce new products including CNG and electric models, while bolstering its existing range with new interventions.

In an analyst call, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra noted that pent-up demand in the passenger vehicle segment has now clearly gone down, barring certain new launches in a few popular sports utility vehicle segments. He noted that due to pent-up demand and low inventory levels last fiscal, the industry reported a steep growth of 27 per cent year on year as compared with FY22. "This year (2023-24)...growth would be slightly moderate in the zone of 5 to 7 per cent. But I'm sure that beyond this financial year, the growth will come back to a double-digit number," Chandra said. There could be an impact on the demand this fiscal on account of increase in prices of vehicles due to the RDE (real driving emissions) transition, he said.