Stepping on the Gas: Tata Motors to foray into CNG space
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Automobile major Tata Motors plans to foray into CNG fuelled passenger vehicle segment in FY22.
Accordingly, few of the company's models will be offered with a factory fitted CNG kit. At present, Tata Motors provides an option to get the CNG kits fitted in some of its PVs at dealerships.
The move assumes significance in the light of high transportation fuel prices, which have spiked recently. Also, the new option is expected to complement the company's portfolio of electric variants.
In a conversation with IANS, Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, said that factory fitted CNG options of some models will be introduced in the current fiscal.
"Currently, we have a comprehensive PV portfolio with ICE and EV options for customers to choose from. Our customers also have the option to get the CNG kits fitted at the dealerships. In FY22, our customers will also get a factory fitted CNG option for some of our models," Chandra said.
On the current sales growth, Chandra cited new launches as well as continued financing support with attractive interest rates as the main factors for month-on-month rise in demand.
"Movement of people within the city and intercity has started. However, owing to limited public transport options and concerns over travel in available public transport options on account of the Covid-19 pandemic, reliance on private transport is expected to increase, giving boost to the demand for the vehicles. We are also seeing good traction from the rural sector owing to good Rabi harvest post the festive season," Chandra said.
Besides, he pointed out the improving indicators which show a slow but sure move towards a more sustainable demand trajectory.
The company's PV business posted its highest ever sales in nine years in March 2021 and Q4FY21.
In FY21, the business registered its highest ever annual sales in eight years, posting a growth of 69 per cent versus FY20.
The PV business' overall sales grew by 422 per cent during March 2021 to 29,654 units from 5,676 units sold in March 2020.
According to Chandra, the company is bullish about the demand in CY21.
"Sales momentum will continue on the back of strong economic fundamentals which are driving key macroeconomic indicators such as positive outlook of GDP growth, uptake in rural consumption, continued urban demand, attractive interest rates and expected recovery in SMEs," he said.
As for the second wave of COvid-19, he said last year's learning has prepared the company to tackle any disruptions in 2021.
