Tata Motors is on a roll. The company has registered its best-ever monthly wholesales performance yet in January 2024: 53,633 units. This is the first time that the company has clocked over 50,000-unit sales in a month, a performance which constitutes strong 13% YoY increase (January 2023: 47,987 PVs).
The January sales include best-ever monthly EV sales of 6,979 EVs, which effectively translate into an EV penetration level of 13 percent for the month.
The company, which retails seven PVs – Altroz, Tigor, Tiago, Nexon, Punch, Harrier and the Safari – in the domestic market, has capitalised on surging demand for its SUVs, particularly the Nexon and the Punch compact SUVs. What has benefited the company’s growth over the past couple of years is that Tata Motors’ PV ‘New Forever’ portfolio covers petrol, diesel, CNG and electric powerplants, thereby considerably expanding its consumer reach compared to most of its rivals.
January 2023 wholesales of 53,633 units are the best monthly numbers for Tata yet and include best-ever monthly EV sales of 6,979 EVs.
Another factor that has acted as a catalyst to Tata Motors’ accelerated growth is its first-mover advantage in India’s fast-growing electric vehicle market, where it has an over 70% market share. The company currently retails the Nexon EV, Tigor EV and Xpres-T (for fleet buyers), the Tiago EV and the recently launched Punch EV.
In CY2023, Tata Motors sold 69,153 EVs, up by a strong 59.15% YoY (CY2022: 43,451 EVs). This also means an increase in the company’s EV penetration levels – to 12.55% from 8.24% in CY2022.
DRIVING TOWARDS RECORD SALES IN FY2024 INCLUDING 75,000 EVs
With 10 months of FY2024 over and two more to go, Tata Motors is also well on track to achieve sales of over 500,000 units in the ongoing fiscal year. In the April 2023-January 2024 period, it has recorded cumulative sales of 471,272 units, up 3% (April 2022-January 2023: 453,013 units) including 60,172 EVs, up 57% YoY (April 2022-January 2023: 38,216 EVs).
The 60,172 EVs sold in the first 10 months of FY2024 are a robust 57% increase over year-ago sales. Tata well set to achieve 75,000 sales.
Tata Motors had last year targeted EV sales of 100,000 units in FY2024. However, this big number may not be achievable albeit it is well set to clock cumulative sales of around 75,000 units. At present it is averaging monthly EV sales of over 6,000 units. Given the current pace of EV sales, it can be surmised that February and March 2024 should easily add another 15,000 units to enable the EV maker to charge past the 75,000-unit mark in FY2024.
Since the launch of the Tiago EV in January 2023, Tata Motors says it has unlocked huge potential to increase its EV sales by adding 160 more cities in its EV sales network. Having inaugurated its two flagship EV-exclusive showrooms in Gurugram on December 21, it now plans to open 50-100 more such stores across the country in the next 12-18 months.
FY2023 with total sales of 544,391 PVs was the best fiscal for Tata Motors yet. At this stage in FY2024, the car and SUV manufacturer is 73,119 units shy of that figure. And it has two more months to achieve that. Stay tuned in for further sales updates and analyses.
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