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Tata Motors will invest up to Rs 35,000 crore over five years in its passenger vehicle business, including electric vehicles, as the automaker ramps up its efforts to expand its product portfolio, develop software-defined vehicles (SDVs), integrate advanced technologies, and roll out next-generation powertrains.
According to an investor presentation, Tata Motors will invest Rs 33,000-35,000 crore between the financial year 2026 and 2030 in the passenger vehicle business, including its EV business. For the EV business, which achieved profitability at EBITDA level in this financial year, the company has already earmarked a capex of Rs 16,000-18,000 crores between FY25 and FY30.
The company noted that it is looking at intense investment spend focused on innovative new products, SDV, advanced technologies and powertrains.
The substantial investment comes on the back of plans to further strengthen its product portfolio to over 15 nameplates across multiple powertrains by the end of this decade from the current eight. The company is looking at 30 product updates, including seven new nameplates and 23 product refreshes. The new nameplates include one under Sierra, two under the Avinya range, four ICE products and two EV products.
Tata Motors aims for passenger vehicle volume growth to significantly outpace the market, targeting a 16% market share (including EVs) by FY27, and further expanding to 18-20% within the subsequent two to three years. For the passenger vehicle business, which clocked Rs 48,400 crore in revenue during FY25, the automaker has committed a capex of 6%-8% of revenue.
In its EV business, the company anticipates maintaining its leadership position, with electric vehicles projected to constitute 20% of its total passenger vehicle volumes by the end of FY27, rising further to 30% by FY30.
The ambitious growth targets come after “a year of consolidation” in the financial year 2025 after four consecutive years of strong performance. The automaker saw its passenger vehicle volume and market share dip during the year. The company has been witnessing strong competition from Mahindra & Mahindra with the latter’s strong portfolio of SUVs.
The EV market has witnessed a significant shift, with Tata Motors’ market share plunging from a commanding 80-85% just two years ago to approximately 55%. This decline is largely due to increasing competition, notably from JSW MG Motor’s Windsor EV and M&M’s new-generation EVs (such as the BE 6 and XEV 9e).
Meanwhile, Maruti Suzuki’s Japanese parent company has said it will invest close to Rs 70,000 crore in India over the next five years for activities such as capacity addition and product updates. On the product side, Maruti Suzuki is planning to expand its portfolio from 18 models to 27 models and plans an EV portfolio for four models.
Hyundai India, which is looking to introduce 26 new models over the next few years – 20 ICE vehicles and six EVs – is investing Rs 10,000 crore toward product development and another Rs 8,000 crore toward R&D and manufacturing capacity.
Mahindra & Mahindra said last year that it is planning to launch 9 ICE SUVs and 7 EVs by the end of this decade.
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