After overcoming many challenging years, Tata Motors has moved to a position of strength and is shifting to a greener future in the next few years, said Tata Sons Chairman N Chandrasekaran in the auto company’s annual report.
The company had in May posted a consolidated net profit of Rs 2,689 crore, after making losses for three years. In its annual report — which was released on Tuesday night — the company said it is on track to ensure that 50 per cent of its total sales comprise electric vehicles (EVs) by 2030.
“Looking ahead, we expect the PV (passenger vehicle) industry growth to moderate due to a strong base effect and other macro factors like rising interest rates, inflation, and the cost impact from progressive regulatory norms,” the report mentioned.
Chandrasekaran said Tata Motors is starting to move to a position of strength. “The upcoming year and beyond are crucial, as it capitalises on the efforts made during this period to achieve a performance that makes us proud,” he mentioned.
Moreover, these next few years will mark a significant shift towards a greener and technologically advanced future, necessitating swift and agile action, he noted.
He said the current year witnessed a surge in inflation requiring coordinated action by most central banks to increase interest rates to control inflationary expectations. “While inflation is starting to moderate, the rise in interest rates has revealed hidden stresses in parts of the banking sector that enjoyed a long run of low interest rates and hence, were not prepared for the rate rise. This could impact global growth in the coming year,” he added.
Tata Motors sold 538,518 cars in FY23, observing growth of 45.4 per cent year-on-year growth. Shailesh Chandra, who heads the PV and EV divisions of Tata Motors said in the report that overall demand is expected to remain high in FY24, but with industry growth moderating. “We intend to sustain our momentum with several new vehicle launches, enhancements and upgrades,” he added.