Tata Motors‘ share price jumped back in the green on Monday after the automobile giant said that it is planning to introduce new products in the CNG and EV segments.
What Happened: Tata Group‘s managing director of passenger vehicles and electric vehicles, Shailesh Chandra, said in an analyst call that the pent-up demand in the passenger vehicle segment has noticeably decreased, except for some recent releases in select popular sports utility vehicle categories.
This is why he thinks that the growth in the segment will moderate to 5%-7% in this financial year (April 2023- May 2024) against a growth of 27% in FY23. He pointed out that in the previous fiscal year, the industry experienced significant growth of 27%, primarily because of pent-up demand and low inventory levels, in contrast to FY22. However, he opined that growth will jump back to double figures after this financial year.
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Chandra said that to maintain growth this financial year, the automobile giant is planning to introduce new products in the CNG and EV segments. As per Chandra, the two segments are expected to see strong growth.
The automobile sales in May were mostly in line with estimates. Analysts noted that two-wheelers and commercial vehicles saw better than expected numbers while passenger vehicle numbers came in line
in line with expectations.
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Price Action: Tata Motors’ share price was up 0.94% to trade at ₹540.95 as the markets opened on Monday.
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