Expect PV sales in India to grow 10% in FY27: TMPV MD & CEO Shailesh Chandra

Passenger vehicle sales in India are expected to grow by around 10 per cent this fiscal, as demand remains strong despite uncertainties arising from the war in West Asia, Tata Motors Passenger Vehicles Managing Director & CEO Shailesh Chandra said on Thursday.

While the industry remains optimistic, demand in the entry level segment could be impacted if fuel prices are increased significantly although it could also lead to consumers opting for CNG and electric vehicles, Chandra told reporters in an earnings call.

"I still feel that the momentum of what GST 2.0 brought has been continuing and that momentum continues to go forward," he said when asked about the impact of the West Asia war on demand for PVs in India with a looming hike in petrol and diesel prices.


Also read: Tata Motors PV bets on SUV, EV demand to drive ‘industry-beating’ growth in FY27 despite geopolitical risks

He further said, "I am very confident that growth still can be around 10 per cent in FY27. There could be a bit of plus and minus here and there if there is a significant impact of the geopolitical situation."

The industry seems to be pretty much on track for a 10 per cent growth rate, Chandra asserted.

The geopolitical tension has been since the end of February, Chandra said, adding "when we see demand in April and May, it has remained very strong. We are in the middle of May and when I see the data, demand remains very strong."

Noting that prices of petrol and diesel will be a significant factor, Chandra said, "There might be some mix change in terms of powertrain preference, maybe electric and CNG might get preferred...there might be some impact in the entry segment, if the hikes are very high but I don't think it will impact the momentum."

Asked if the situation will have an impact on the company's product launch programme, he said, "There is no question of changing long-term product plans that we have. We remain optimistic."

For Tata Motors Passenger Vehicles (TMPV), with a strong product pipeline this year too, and the newly launched products in the last six months will continue to get demand, he said, "We have an industry-beating growth scenario."

Chandra also said conversion of customer inquiries into purchases has also improved in May as compared to April, reflecting underlying demand.

He, however, said increasing commodity prices have put pressure on automobile manufacturers and TMPV will consider whether to increase vehicle prices or not in the coming months.