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Tata Motors will invest ₹33,000 to ₹35,000 crore in its passenger vehicle and electric vehicle business over the next five years. The company aims to rapidly expand its product portfolio, develop software-defined vehicles (SDVs), adopt advanced technologies, and launch next-generation powertrains.
According to an investor presentation, Tata Motors EV business, which turned profitable at the EBITDA level this financial year, has earmarked a capital expenditure of ₹16,000 to ₹18,000 crore between FY25 and FY30.
The company plans to grow its passenger vehicle portfolio from the current eight models to over 15 by the end of this decade, including seven new nameplates and 23 product updates. The new products will include one under the Sierra nameplate, two under the Avinya range, two ICE models, and two EV models.
Tata Motors targets a 16% market share in the passenger vehicle segment (including EVs) by FY27, with an ambition to expand it to 18-20% over the following two to three years. In FY25, Tata Motors' passenger vehicle business generated ₹48,400 crore in revenue, and the company plans to invest 6-8% of its revenue as capital expenditure.
In the EV segment, Tata Motors aims to maintain its leadership, expecting EVs to account for 20% of its total passenger vehicle volumes by FY27 and increasing to 30% by FY30.
After four consecutive years of growth, FY25 was marked as a year of consolidation, where Tata Motors experienced a decline in both sales volume and market share, facing stiff competition from Mahindra & Mahindra’s growing SUV portfolio.
Tata Motors EV market share has dropped from 80-85% two years ago to approximately 55% now, mainly due to rising competition from JSW MG Motor’s Windsor EV and Mahindra’s new-generation EVs like the BE 6 and XEV 9e.
Meanwhile, Maruti Suzuki’s Japanese parent company has announced an investment of nearly ₹70,000 crore in India over the next five years to expand capacity and product offerings. Maruti plans to grow its portfolio from 18 to 27 models, including four EVs.
Hyundai India is also set to introduce 26 new models over the next few years, including 20 ICE vehicles and six EVs. The company is investing ₹10,000 crore in product development and another ₹8,000 crore in R&D and manufacturing capacity.
Mahindra & Mahindra has already announced plans to launch nine ICE SUVs and seven EVs by the end of this decade.
