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New Delhi: Festive season is usually the time when India’s car showrooms turn into buzzing bazaars. This year, the excitement is mixed with anxiety. On one hand, the government’s GST 2.0 reset promises to make cars cheaper. On the other, uncertainty around tariffs, rains, and shifting consumer preferences have left buyers holding back.
In a conversation with Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility Ltd, we spoke about sales, new features, AI in cars, and how the company plans to tackle the upcoming festive rush.
Asked about slowing sales of the Punch despite crossing 6 lakh units, Srivatsa didn’t see it as a crisis. He pointed out that the Punch was India’s best-seller last year and continues to be strong among first-time buyers. “More than 70% of Punch customers are first-timers. These are buyers who earlier would have settled for small hatchbacks but now jump straight to SUVs,” he explained.
He also noted a shift in buyer appetite. Even in categories like premium hatchbacks, many first-time buyers are entering directly. “It’s cyclical,” he said, hinting that interest rates and financial confidence also play a role in how people decide their first car.
On the trend of “gadgetization” in cars, Srivatsa said the focus was on meaningful features, not long lists. He cited examples like electronic rear-view mirrors doubling as dashcams, or 360-degree cameras optimized for Indian roads. “Every feature costs money, so we want customers to pay only for what is useful here,” he stressed.
When asked about AI integration - like ChatGPT in infotainment, he said it is inevitable. “Right now, mobile phones are the main interface, but soon AI will move from the phone into the car. It’s only a matter of time,” he said, calling it an industry-wide shift.
On GST, Srivatsa said the aim was to make products more accessible. “Long term, this is very positive for safety and for bringing more people into cars,” he said. But the uncertainty till now, he admitted, was hurting bookings. Dealers are under pressure as customers delay decisions. “Announce things soon so that people can buy without hesitation,” he urged.
Tata Motors, like other automakers, will pass on the GST cuts to customers from September 22. Prices of models such as the Nexon and Safari will drop by up to ₹1.55 lakh and ₹1.45 lakh, respectively.
Srivatsa said Tata Motors’ “Festival of Cars” campaign will roll out mid-September, once GST clarity arrives. Kerala remains a key focus, with localized campaigns during Onam and other festivals.
On after-sales, he admitted the company’s service growth had lagged behind sales expansion but promised improvements. “We are adding service bases, opening training centers, and improving spare part supply. Service is a slow-cook thing, but a year from now you’ll see results,” he said.
Despite global headwinds like Trump’s tariffs, Srivatsa expressed confidence in India’s resilience. “We have a diverse export base. We’ll find new customers, new markets,” he said. For now, his biggest wish is simple: remove the uncertainty around GST and let festive season retail flow.
“Diwali is when India really buys cars. If clarity comes in time, this season could still be a cracker.”
