It will be the Mother of all festive seasons: Tata Motors on Diwali sales


Tata Motors, which has the third biggest share in India’s car market, expects a 25-30% uptick in its monthly volumes for the upcoming festival season that the management believes might turn out to be one of the best in recent years due to pent-up demand and an increasing consumer preference for personal mobility.

To further build the excitement for the festive season that starts with Onam mid-August,

has lined up a slew of new offerings, starting with Tiago NRG. It will be followed with the all-new mini-SUV, tentatively called Hornbill, based on the HBX concept in September. Separately, there may be several limited-edition variants of the Nexon, Harrier and Safari.

“This festive season is going to be the mother of all festive seasons,” said Rajan Amba, vice president for sales, marketing and customer service at Tata Motors. “There is a huge pent-up demand. All data points –customer flow, bookings, inquiries, website visits – suggest exponential growth.”

The company is preparing for even higher off-take, and it is readying a plan to make about 40,000 units per month once Hornbill hits the roads next month.

Onam would be a key indicator for the industry on the likely demand in the coming months through to Diwali in November, said Amba. The recovery after the second wave has been very strong and secular and the demand has revived across segments – and geographies.

The company, however, is struggling to cope with the shortage of semiconductors. Apart from getting into three-way agreements with its suppliers and the chip makers, Tata Motors has also been sourcing semiconductors from the open market.

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The company has had to adopt unique ways – like giving only one electronic key fob at the time of purchase to the customer and giving the second one later, as per availability. It also launched a variant of the Tiago hatchback without a music system, since chips needed for the system are in short supply. The company may employ this strategy with other models as well.

With sustained demand for its existing models, Tata Motors crossed a 10% market share for the first time in eight years in FY-22. Its popular SUV Nexon crossed 10,000 units in sales for the first time ever in the month of July, helping Tata Motors cross the 10% volume threshold in the SUV market.

The production plan in the coming months for Nexon SUV is in excess of 10,000 to 12,000 units, indicating strong traction for the brand. Premium SUVs Harrier and Safari are also delivering monthly sales of more than 4,000 units between them.



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