New Delhi (IANS) Backed by improved range of affordable products, automobile major Tata Motors expects its passenger vehicle business to over achieve the 2020 sales target.
Accordingly, the company had to increase production to meet the surge in demand.
In a conversation with IANS, President of Tata Motors' passenger vehicles business unit, Shailesh Chandra, said: "Post Unlock 1.0 in May, our volumes have been growing month-on-month. We had recovered fully at the end of H1."
"The revenue from passenger vehicle sales was up by 86.3 per cent y-o-y and the business achieved EBITDA breakeven on the back of significantly improved range of products, volume scale up and strong savings programme to reduce indirect costs.
"Additionally, this growing performance was sustained in October as well when we posted a healthy growth of 22 per cent (YTD) vis-a-vis last year (April-October)," Chandra said.
Last month, the company witnessed a 79 per cent YoY growth to 23,617 units from 13,169 units sold in October 2019.
"We are positive to continue this momentum and achieve significantly higher volumes that we had forecasted for ourselves at the start of the year," he said.
Chandra pointed out that the 'strong recovery' which commenced post the lockdown period has sustained itself.
"In Q1FY21, the market was down by 78 per cent. However, in Q2FY21, the industry recovered fully and posted a growth of 18 per cent, albeit on a lower base of Q2FY20," he said.
Besides, Chandra cited the increased preference for personal mobility as the key factor for the healthy sales performance.
"When we unlocked in June, it was primarily pent up demand and supply was the concern then. With time, pent up demand is decreasing and with the increase in preference for personal mobility (which is driving demand), demand is growing," Chandra said.
"Cars have now become a necessity because of the current way of life and to ensure safety, people will resort to buying personal vehicles," he added.
Chandra predicted that sustainable demand will last till the start of 2021.
"Demand will sustain itself till December as we have a strong number of live bookings and the economy is going strong," he said.
He also disclosed that production had to be increased by over 230 per cent since June 2020.
"Our retails have been on the higher side than wholesale month-on-month. The growth in volume has come on the back of increase in the fresh production that we were able to achieve over the last few months," Chandra added.