Tata Motors MD says company will continue making diesel vehicles till there is demand
In a conversation with CNBC-TV18 Chandra said that as the festive season unfolds the industry's is seeing robust month-on-month growth, indicating positive momentum in the market. He specifically noted that Tata Motors has witnessed exceptional sales performance from two of its flagship models, the Nexon and Punch, which have been driving growth within the TAMO portfolio.
After Union Minister Nitin Gadkari said he plans to request Union Finance Minister Nirmala Sitharaman to impose an additional 10 percent goods and services tax (GST) on diesel engines and vehicles, senior Tata Motors official said the company would continue with diesel cars till there are customers.
"We will continue making diesel vehicles till there is demand,” said Shailesh Chandra, the Managing Director of Tata Motors, Passenger Vehicles, and Electric Vehicle Mobility.
Gadkari has clarified that such a GST hike proposal isn’t currently under active consideration by the government.
Chandra acknowledged that justifying the cost of diesel engines could become challenging once BSVII standards are enforced, which might further reduce diesel vehicle sales in the market.
In a conversation with CNBC-TV18 Chandra said as the festive season unfolds the industry is seeing robust month-on-month growth, indicating positive momentum in the market. He specifically noted that Tata Motors has witnessed exceptional sales performance from two of its flagship models, the Nexon and Punch, which have been driving growth within the TAMO portfolio.
Chandra underscored that the high demand experienced in the previous year has been sustained, and the industry has already crossed a significant milestone by exceeding 2 million units. Furthermore, it appears to be firmly on course to surpass the remarkable 4 million unit mark.
However, Chandra delved into the changing dynamics within the passenger vehicle sector. Diesel sales for Tata Motors have seen a decline, ranging between 12 percent to 15 percent. This dip can be attributed to the cost implications associated with adapting to evolving regulations, which have necessitated changes in diesel engines.
Further, Chandra emphasised that Tata Motors has taken significant steps to align its diesel emissions with the latest BSVI Phase II standards, underscoring the industry's commitment to reducing emissions.
He mentioned that Gadkari has been vocal about transitioning toward zero-emission technology. Chandra added that this decade will be marked by a mix of powertrain technologies, with the ultimate destination being a state of zero emissions.
Despite these transformations, Tata Motors has made a clear statement: they will continue manufacturing diesel vehicles for as long as there is a demand.
Further, Chandra appealed to the government to consider extending FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) incentives to private electric vehicles.
Notably, Chandra said a significant portion, approximately 90 percent, of electric car sales currently cater to private customers, indicating a burgeoning interest in electric mobility among individuals.
First Published: Sept 12, 2023 4:49 PM IST
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