Tata Motors Passenger Vehicles Ltd (TMPVL) has set an ambitious target for electric vehicles (EVs), expecting them to account for more than 30% of its total passenger vehicle (PV) sales by fiscal year 2031. This electrification push is central to the automaker's broader growth strategy, which also includes significant market share expansion and product portfolio enhancement.
Ambitious Growth Trajectory
Addressing the company's 81st Annual General Meeting, Chairman N. Chandrasekaran outlined a vision for the company to grow its business tenfold between FY20 and FY31. The plan aims to scale annual passenger vehicle sales to over 1.2 million units, achieve a 20% market share in India, and improve profitability to double-digit EBITDA margins.
Tata Motors has already demonstrated significant growth, strengthening its market position to become India’s second-largest player by volume in the second half of FY26. From a 4.8% market share in FY20, the company reached 14.2% in Q1 of the current fiscal year, climbing from the sixth position to second in the Indian passenger vehicle market.
EV Leadership and Milestones
The company has been a pioneer in India's electric mobility transition, having surpassed 300,000 cumulative EV sales. Tata Motors has maintained its leadership in the domestic electric passenger vehicle market for seven consecutive years, despite increasing competition. Chandrasekaran noted that monthly EV sales have surged from approximately 100 units in FY18 to nearly 15,000 units recently, underscoring the success of their early commitment to electric mobility.
Strategic Product and Collaboration Focus
Looking ahead, Tata Motors plans to reinforce its product lineup with six new nameplates and more than 20 product refreshes over the coming years. The company's multi-powertrain strategy, encompassing petrol, diesel, CNG, and electric vehicles, will continue to adapt to evolving customer preferences.
Following the demerger of its commercial vehicles business, Tata Motors Passenger Vehicles will operate as an independent listed personal mobility company. The company also intends to deepen its collaboration with luxury carmaker Jaguar Land Rover (JLR), leveraging complementary capabilities in manufacturing, technology, and human resources. A significant milestone in this collaboration is the successful commencement of operations at the TMPV–JLR facility in Panapakkam, Tamil Nadu.
For FY26, the India business reported a record revenue of ₹58,465 crore, a 20.7% increase, while maintaining an EBITDA margin of around 7% and ending the year with a net cash position of ₹6,710 crore.