Tata Motors has announced a remarkable investment of approximately Rs. 33,000 to Rs. 35,000 crore in its passenger vehicle and electric vehicle business over the coming years, specifically between FY2026 and FY2030. This strategic investment aims to fuel the development of innovative new products, cutting-edge powertrains, and software-defined vehicles, positioning Tata Motors to thrive in India’s dynamic automotive landscape.
In its latest investor presentation, Tata Motors has laid out an ambitious plan to roll out around 30 product updates in the next five years. This exciting initiative includes the launch of seven all-new models alongside 23 refreshed offerings. Among the anticipated new models are one under the iconic Sierra badge, two from the Avinya EV range, and both internal combustion engine and electric models designed to cater to a diverse range of consumer preferences.
With this expansion, Tata Motors is on track to elevate its portfolio to over 15 nameplates across various powertrain technologies by 2030, a significant increase from the current eight. A substantial portion of the investment—about Rs. 16,000 to Rs. 18,000 crores—will specifically bolster the EV segment, which has recently achieved profitability at the EBITDA level in FY2025.
Tata Motors is proudly targeting a passenger vehicle market share of 16% (including electric vehicles) by FY2027, with aspirations to enhance this figure to an impressive 18-20% by FY2030. Despite facing a slight dip in volume and market share during FY2025, the company is wholeheartedly committed to regaining momentum through innovative products and an even greater consumer outreach.
In the electric vehicle sector, Tata Motors is determined to maintain its leadership position, even amidst intensifying competition. The company anticipates that EVs will comprise 20% of its overall passenger vehicle sales by FY2027 and aims to increase that percentage to 30% by FY2030. Despite a decrease in EV market share from the remarkable 80-85% to approximately 55% due to new players like JSW MG Motor and Mahindra’s enhanced EV offerings, Tata remains optimistic about its future in this flourishing space.
This significant investment from Tata Motors comes on the heels of a vibrant narrative within the industry. Maruti Suzuki’s parent company is set to invest Rs. 70,000 crore in India for expansion and product development. Mahindra is also gearing up for an exciting future with plans for 16 new SUVs—nine internal combustion engine models and seven electric vehicles—by 2030. The automotive horizon is bright, and Tata Motors is at the forefront of this exhilarating journey and no foreign brand cannot come close to anything like this.
