‘Auto gross sales to melt in FY 2026, Tatas to convey again concentrate on hatchbacks’

Auto gross sales are anticipated to decelerate within the upcoming fiscal due to a surplus of inventory with sellers although Tata Motors will search to woo again hatchback consumers by upgrading a few of its fashions alongside its SUV launches later this 12 months together with the Harrier EV, in keeping with a high govt on the auto firm.

“I feel will probably be a bit of tough to ship progress in FY 2026, which is able to likely be within the low single digits as a result of we’re approaching the again of three or 4 years of spectacular progress,” Vivek Srivatsa, Chief Industrial Officer – Tata Passenger Electrical Mobility, informed The Hindu on the ongoing Bharat Mobility World Expo 2025.

The softening of progress is primarily as a result of surplus inventory throughout the dealership community within the nation. “So, doubtlessly the sellers might promote to prospects, however not uptake from the corporate,” Mr Srivatsa defined, including that the surplus inventory was as a result of market remaining “challenged” within the second half of 2024, barring the 2 pageant months of October and December.

In CY 2024, India’s passenger car phase grew at almost 4.5% with 43 lakh autos bought. For Tata Motors there have been almost 5.6 lakh vehicles and SUV gross sales, which was a 2% progress as in comparison with the earlier 12 months.

The auto-manufacturer which enjoys the most important market share (70%) within the EV phase showcased its Tata Harrier EV, and Tata Sierra ICE that are anticipated to be launched later this 12 months. Whereas the hatchbacks didn’t see any new launches, Tata Motors plans to convey again its concentrate on it to enhance its market presence by upgrading fashions resembling Tiago and Altroz because it believes that “progress will occur in two ends of the spectrum”.