The company expects a better business environment even as chip shortages continue to make it challenging to cater to the enhanced demand.
The auto major also listed an increase in commodity prices as a significant factor that could have a bearing on its profitability in the ongoing fiscal.
“Talking about FY23, on the projections that we have seen from various agencies, which are estimating volume towards a possibility of the industry surpassing the peak that we’ve seen in FY19 of 3.4 million (units),” Tata Motors managing director-passenger vehicle and electric vehicles Shailesh Chandra said in an analyst call.
The basis of the optimism is that in the first quarter of the last two financial years the industry lost volumes on account of massive Covid-related disruptions and so far the situation seems better in the current fiscal, he added.
“We are hoping that this year, there will be no disruption of that nature and also the semiconductor situation might start easing out and it is on the basis of that assumption,” Chandra said.
Commenting on the current situation, he noted that the chip supply remains uncertain, and is restricting the auto major to tap its full demand potential.
“So as far as Tata Motors is concerned, certain electronic components will remain a challenge, but we are taking multiple actions to mitigate this risk in terms of creating alternatives, additional resources, close coordination with semiconductor suppliers and at times open market price also,” he said.
Chandra said that the company is also taking significant steps to reduce cost structures across the organisation.
“We will continue to innovate, focus on value engineering and we have identified nine levers to improve our profitability in the next financial year,” he noted.
“We are already seeing increased interest of customers in these two powertrains, primarily driven by, I would say, increase in petrol prices,” he stated.
Chandra said the automaker is also going for certain capacity de-bottlenecking actions to further unlock the next phase of growth planned for this year.