Tata Motors expects the passenger vehicle industry growth to moderate to 5-7 per cent in the current financial year as compared with 27 per cent sales growth in the last financial year with dip in pent-up demand, according to a top company executive.

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In order to sustain growth, the auto major is looking to introduce new products including CNG and electric models, while bolstering its existing range with new interventions.

In an analyst call, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra noted that pent-up demand in the passenger vehicle segment has now clearly gone down, barring certain new launches in a few popular sports utility vehicle segments.

He noted that due to pent-up demand and low inventory levels last fiscal, the industry reported a steep growth of 27 per cent year on year as compared with FY22.

"This year (2023-24)...Growth would be slightly moderate in the zone of 5 to 7 per cent. But I'm sure that beyond this financial year, the growth will come back to a double-digit number," Chandra said.

There could be an impact on the demand this fiscal on account of increase in prices of vehicles due to the RDE (real driving emissions) transition, he said.

"From Tata Motors' side, the way we are preparing ourselves is to focus on demand generation through micro-market focus and actions to improve the conversion rates," he noted.

Chandra said the company is also growing its portfolio in terms of CNG and EV models with both segments expected to see good growth this year.

"We should be the beneficiary of that. And of course, we're driving margin improvement through an institutionalised cost-reduction initiative," he added.

In FY23, Tata Motors reported its best ever year in terms of dispatches to dealers at 5.4 lakh units. The company's wholesales grew around 45 per cent year on year as compared with FY22.

Outlining the company's product related plans, Chandra said it would keep the excitement up with new interventions in existing brands and new product introductions.

"We are going to bring a CNG variant (of Punch) with the twin cylinder technology and this is going to be unique in the market...We are also planning to bring EVs, so we are very confident that these two products will be able to sustain the volumes," he noted.

Besides, the company is going to add new nameplates, Chandra said.

"We have showcased that in Auto expo, Curvv, Sierra, these are new nameplates, which are going to get launched," he added.

Chandra further said: "There's going to be a steep increase in the EV volumes. We are expanding our portfolio in the CNG segment, so I think we have several levers, which are going to increase our volumes, as well as market share."

Earlier this month, Tata Motors launched the CNG version of its premium hatchback Altroz at an introductory price of Rs 7.55 lakh (ex-showroom all-India).