“Going forward, we have taken note of future industry trends and how the growth will pan out in the next five to six years. We see multiple transitions happening in these five to six years,” he said.
Based on data from various agencies, Chandra said, “We expect that the Indian auto industry (PV) would touch 6 million units by FY30 which basically would be a secular growth trend of 6 per cent from now onwards — FY25 to FY30.”
This growth will be driven by factors like rising disposable income, shorter vehicle ownership period, he said adding, the company also believes that the share of upgraders and additional car buyers will increase and that has been the trend in the last few years and the first time buyer share has been reducing.
“The growing preference for SUVs and the intense launch actions that we are expecting in the SUV segment will keep the segment share of SUVs high and it will happen at the cost of hatches and sedans,” he said.
Stating that new technology features and upgrades have been the trend in the past few years and are a natural progression, he said, “The one which will be the most disruptive in the industry in the next five to six years will be the stringent CAFE norms, that is CAFE III and beyond.”. Right now the industry is in CAFE II phase and CAFE III is expected around 2027, Chandra said, adding certain OEMs have been able to meet CAFE II norms “with zero or even low penetration of EVs”. “In the new norms it will become extremely difficult, if not impossible to comply without EVs in the mix as the companies will face significant penalties and also will face the risk of adverse impact on brand image,” he said.
Outlining the ambitions of Tata Motors, he said, “Keeping these industry trends in mind, we plan to capitalise on all these industry transitions and deliver market-beating growth. We are targeting a market share of 18-20 per cent by FY30 and there are various levers that we will utilise to drive the market share growth.”.
In the fiscal 2023-24, the company had a market share of 13.9 per cent in the domestic PV segment.
In order to achieve the target, Chandra said the company will increase its product offerings and enhance the addressable market which is at 53 per cent of the total TIV (total industry volume) at present with seven models.
“We aim to increase our addressable market to 80 per cent by FY30 with the addition of new name plates. We have already announced the launches of CURVV and Sierra over the next two years which will help us capture the growing mid-SUV segment,” he said.
Besides, he said Tata Motors will enhance its multi powertrain offerings to leverage industry powertrain shifts towards greener powertrains, such as EVs and CNGs which are expected to reach 20 per cent and 25 per cent of the total market respectively by FY30.
When asked about investments planned on new launches, Chandra did not share details but said, “For PV business, we want it to keep between 6-8 per cent of our revenue. It can be on the higher side in the next five six years so that we pave the way for the new nameplates.
In the electric vehicles business we have already mentioned that we plan to invest about Rs 16,000 crore to Rs 18,000 crore in the next five to six years.”
On the progress of demerger of its commercial and passenger vehicles segments into two separate listed entities, Tata Motors Group CFO PB Balaji said, “We intend to file the scheme in the coming months and we are hopeful that by Q1 next year we should be done with that.”
In March this year, the company had announced the demerger to better capitalise on growth opportunities.
When asked if the company has any plans to further demerge British arm Jaguar Land Rover from the passenger vehicles entity that would be formed after the separation of the commercial vehicles business, there were no such plans.