Homegrown auto-major Tata Motors expects its passenger vehicle (PV) sales to outpace industry growth this fiscal, driven by new launches and model upgrades. The automaker on Thursday launched the all-new version of Altroz to strengthen its presence in the premium hatchback segment and will launch the Harrier.ev next month, followed by the highly anticipated Sierra SUV later this year.
“The growth will continue to be in low single digit like 4-5% for the PV industry this fiscal. In the last few years, Tata Motors hardly had any launches. This year, however. is going to be a year of launches. So, we expect a much higher growth than the industry,” Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility told TNIE. The company also aims to reclaim a 25% market share in the premium hatchback segment.
PV sales in India moderated last fiscal. As per Federation of Automobile Dealers Associations (FADA) data, retail PV sales in the domestic market grew by 4.9% at 41,53,432 units in FY25 as compared to 39,60,602 units in FY24. Tata Motors' retail sales had declined marginally to 5,35,960 in FY25 units as compared to 5,39,567 units in FY24, as per FADA data.
The maker of Punch and Nexon SUV announced plans to expand its retail footprint in India and strengthen its international presence in FY26. “We have re-entered Sri Lanka, entered Mauritius, and will soon tap into larger markets. We aim to be present in at least 4-5 new markets within the next year," said Srivatsa.
He highlighted the significance of the hatchback segment, particularly premium models. “Premium hatchbacks account for 30-32% of the hatchback segment, with annual volumes coming at 3.5-4 million units. While the overall hatchback market has declined in recent years, the premium segment is growing,” said Srivatsa.
He admitted that Tata Motors' share in the premium hatchback segment had slipped from 25% in FY24 due to a lack of updates. “Our competitors had full model upgrades in recent years. We, on the other hand, prioritised SUVs. Now we realise that it is hurting us by not having a mid-cycle enhancement. We are very sure to double our market share in the premium hatchback segment with the new Altroz,” said Srivatsa.
Altroz sales had come down to about 2,000-2,500 units a month from a peak of about 6,000 units earlier. It competes against segment leader Maruti Suzuki Baleno and Hyundai’s i20. The all-new Altroz has been launched with introductory prices ranging from Rs 6.89 lakh to Rs 11.29 lakh across petrol, CNG and diesel variants.
“Premium hatchbacks command the largest market share among all hatchbacks. Over the past 3 years, more than 1 million premium hatchbacks have been sold. We expect premium hatchbacks to remain strong because the number high income households are expected to double in this decade with nearly 65 million households having an annual income of more than Rs 15 lakh by 2030,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited.