Tata Motors To Invest Rs 35,000 Crore In EV Push, Eyes 20% Market Share By FY27

Tata Motors, one of India's most trusted automobile companies, is gearing up for a significant expansion of its product portfolio from 2026 to 2030. As part of this plan, the company intends to make a substantial investment of Rs 33,000 to Rs 35,000 crore. Headquartered in Mumbai, the company has made this crucial decision to further strengthen its position in the rapidly growing passenger vehicle (PV) market in India.

Tata Motors is preparing to introduce 30 new products to the market over the next five years, including 7 new models and 23 updates to existing models. By FY27, the company aims to capture at least a 16% share of the PV market, including electric vehicles (EVs). This share is expected to rise to 18-20% in the following years. According to the company, PV sales in India are projected to reach 60 lakh units by 2030. Tata Motors is preparing its production capacity and portfolio for this large-scale production.

New Technology, EV Development, and Service Network Expansion

The investment is not limited to new vehicles; rather, the company is placing greater emphasis on next-generation technologies, powertrain upgrades, and software-defined vehicles (SDVs). The company is also continuously expanding its sales and service network.

Tata Motors has shown keen interest in the electric vehicle sector, with EVs expected to account for at least 20% of the company's total PV sales by FY27, and this figure is expected to rise to 30% by FY30. The Harrier and Sierra models will play a key role in the EV segment. The company plans to expand charging infrastructure in smaller cities, addressing buyer concerns and reducing the total cost of ownership, with a particular focus on CNG-based businesses.

Market Penetration and Market Trend Analysis

According to Tata Motors, the company will be supported by the country's GDP growth, rising employment levels, and rapid replacement cycles in the broader industrial sector. While the MPV segment is expected to see significant growth in the domestic market, SUVs will continue to dominate. The company expressed confidence that the SUV segment will continue to dominate, and the MPV segment will also see significant growth. However, it was reported that sales in the hatchback segment have declined due to a lack of new models and rising starting prices. Tata Motors aims to achieve EBITDA breakeven in the EV segment by FY26, paving the way for long-term profitability.

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