Tata Motors hints at price hike for passenger vehicles next fiscal year
Despite the growing demand for personal mobility and SUVs in India, Tata Motors forecasts less than 5% growth in the passenger vehicle segment for the next financial year. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles, expects moderate growth due to challenges in the industry.
Chandra predicts a challenging situation for the passenger vehicle segment in the next fiscal year, with less than 5% growth. The industry witnessed a 25% growth in FY23, which is expected to moderate to about 8% in the current financial year.
Automakers in India have already announced price hikes for their passenger vehicle models citing increasing production costs. Chandra hinted at more price hikes in the next financial year, posing challenges for the growth of passenger vehicles.
Tata Motors is leading the electric vehicle segment in India with over 80% market share. Despite challenges in EV charging infrastructure development, Chandra believes the momentum for electric vehicles will continue in the next financial year, with sales surging by 95-100% YoY in 2023 compared to the previous year.
