Cyrus Mistry, chairman of Tata Motors, which recorded a 31 per cent fall in car and utility vehicle sales last year, cautioned that the company’s challenges will continue this year, too.

“The company’s passenger vehicles sale was significantly lower as compared to expectation. Rapid changes in customer preferences along with the de-regulation of diesel pricing both took their toll,” Mistry addressed shareholders in Tata Motors’ 68th Annual Report.

According to sales data provided by the Society of Indian Automobile Manufacturers (Siam), Tata Motors’ passenger vehicle sales stood at 229,325 units in the last financial year, registering a market share of just 8.9 per cent. The domestic auto industry reported a growth of two

per cent last year.

The fall in car sales included a 28 per cent slump in sales of the Nano brand at 54,000 units last year.

Increasing competition, rising fuel costs and weak consumer sentiments will continue to put pressure on the company this year as well. Profit slumped to Rs 301 crore last year, a drop of 76 per cent against Rs 1,242 crore (Rs 12.42 billion) in 2011-12. “Global competitors bring international experience, global scale, advanced technology and significant financial support, for the operations in India. The competition continues to intensify every year,” said an analysis in the report.

However, Mistry is confident of a turnaround for the company, backed by new launches. “The company is working on a slew of new products, with a plan running up to 2020; this includes appropriate focus on alternate fuels, hybrids and electric vehicles,” he added.