Passenger Vehicles industry growth likely to moderate to less than 5% in FY25: Tata Motors

The growth of the domestic passenger vehicle industry is likely to moderate to less than 5% in the next fiscal, according to Tata Motors Passenger Vehicles Managing Director Shailesh Chandra.

The growth of the domestic passenger vehicle industry is likely to moderate to less than 5% in the next fiscal, according to Tata Motors Passenger Vehicles Managing Director Shailesh Chandra.

The company, however, expects electric vehicle sales to keep growing despite the slow pace of charging infrastructure development in the country.

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"We had seen a very strong growth in FY23 of 25%, which is likely to moderate in FY24 to about 8%. Therefore, we are seeing with this high base effect, and FY25 will be slightly challenging with less than 5% growth rate," Mr. Chandra said in an analyst call.

He further said, "As far as EVs are concerned, I think the biggest challenge here is the pace at which the charging infra is growing. It is lagging behind the pace at which the EV adoption is happening."

Citing other challenges, Mr. Chandra noted that while commodity prices have been stable in the past quarter or so, there is a risk that prices of certain items may go up going forward.

"So we are keeping a very close track of that," he added.