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Tata Motors is betting on a “2:2:2” electric vehicle strategy — two models each in the entry, mid, and premium segments — to strengthen its leadership in India’s fast-evolving EV market. The structured product roadmap, outlined by Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, is designed to cater to a broad spectrum of personal mobility needs while keeping pace with rising competition and shifting consumer expectations.
Chandra explained that as competition intensifies, especially in the electric vehicle (EV) market, Tata Motors welcomes the increased activity. “We are happy about it because you do not want to be the sole player in the market — otherwise, the market will never expand. Consumer confidence also grows only when every player participates,” he said during a media interaction on Tuesday.
The 2:2:2 strategy segments the EV personal market into three price bands, with two products in each category to ensure broad coverage. In the premium electric SUV segment, where Tata was previously absent, the company recently launched the Harrier EV and will introduce the Sierra EV during the year. The company expects both vehicles to make a strong impact on sales. “Even before we opened bookings for the Harrier EV, customers were flocking to get their cars booked. Frankly, it was a surprise for us that at this price point there is so much demand,” Chandra said.
He believes this success stems from the fact that many traditional barriers to EV adoption — such as high pricing, range anxiety, and slow charging — are now being overcome in this segment. “The Harrier EV offers a 500+ km range and fast charging, and it’s price-competitive with ICE automatics because of the high duties in that category,” he said.
In the entry-level segment, where Tata already commands a 75% market share with models like the Tiago EV and Punch EV, the focus is on expanding the market by removing lingering barriers. “This segment is still seen as best for city use, with a 200 km range. We need to address those perceptions and introduce enhancements that improve the appeal,” Chandra noted.
“In the mid- to long-term, you will see more action in this area so that we can hit a sweet spot where mainstream buyers are attracted,” he added.
The mid-segment, which includes models like the Nexon EV and Curvv EV, poses a more nuanced challenge. “The mid-segment is more versatile than the entry, but it’s not without its own issues — especially around price and range,” Chandra noted. Tata Motors is working “religiously” to improve the value proposition in this category, with differentiated products aimed at converting mainstream buyers.
Chandra emphasized that this 2:2:2 framework will be central to Tata Motors’ goal of capturing a steady 50% market share in the personal EV segment over the medium to long term. “Both products in each sub-segment will be compelling and differentiated,” he said.
Despite this long-term confidence, the company is aware of its recent dip in EV market share, which Chandra attributes to both external and structural factors. Tata Motors lost around 6,000–7,000 EV units in the fleet segment after the FAME incentives were discontinued, and some major fleet operators slowed purchases. In addition, the first half of FY25 saw a muted personal EV market, impacted by global negativity around EVs.
“There was a lot of negative news around electric vehicles globally,” Chandra explained. “But things picked up in the second half, and the industry really revived.”
He acknowledged that multiple new launches by competitors led to a short-term dip in Tata’s market share. “Right now, many new EV models are at their peak launch buzz, which naturally distorts market share temporarily, but it will eventually stabilize,” he said.
Chandra stressed that his focus is not on short-term fluctuations but on sustaining a solid 50% market share in a normalized, steady-state market. “Short term, I’m not worried. My focus is going to be in the mid- to long-term — how do I sustain a 50% market share and ensure I have the right strategy,” he said.
Tata Motors aims to achieve a steady-state market share of 50% in the EV segment over the mid to long term. “In the short term, there can be a lot of ups and downs. It could drop to 35% or jump to 50%. A model like the Harrier EV can swing the numbers drastically in a small market of 12,000 units,” he added.
Looking further ahead, Tata Motors has set an ambitious aspiration to capture 18–20% overall market share in the Indian passenger vehicle space by the end of the decade, underpinned by four strategic pillars. The most significant of these is portfolio expansion. From its current eight nameplates, Tata plans to increase its lineup to 15 by 2030, including seven new models — among them the Sierra, two under the Avinya platform, two new ICE models, and two additional EVs.
The company also plans to introduce 23 refreshes and facelifts by 2030 to keep its product line relevant and competitive. “Technology readiness is another area we’re focusing on. The Harrier EV is just one example of how we’re staying ahead of the curve,” Chandra said.
As for the immediate future, Chandra sees FY26 as a strong product-cycle year. The Tiago refresh, launched in January, has already received a strong market response. The updated Altroz was launched in May, and deliveries have just begun. Both are expected to help Tata Motors regain momentum in the hatchback segment, which had been a weak spot.
On the SUV front, the highly anticipated Sierra will debut later in FY26. Meanwhile, although not yet dispatched, the Harrier EV has seen enthusiastic reception. “We’re seeing very high interest in the high-end EV space, and we’re positioning ourselves with compelling products and value propositions across the board,” Chandra concluded.
With a lineup of new launches, mid-cycle updates, and improved value offerings, Tata Motors is optimistic that FY26 will be a good year for the company.
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