Tuesday, June 10, 2025
By Kamal Swami
Tata Motors to Invest Rs 35,000 Crore to Boost Its EV Segment
The domestic carmaker Tata Motors has announced an ambitious plan to invest between Rs 33,000 crore and Rs 35,000 crore to strengthen its position in the Indian passenger vehicle market, mainly in the electric vehicle segment. At the same time, the carmaker also aims to extend its market share from 14% in FY25 to 16% by FY27, and finally touch the mark between 18–20% in the longer term. Although the homegrown carmaker has steadily its market share of 14% in FY25, it is determined to outpace competition, especially with its Korean rivals. In the meantime, another domestic carmaker, Mahindra & Mahindra succeeded in strengthening its position in the Indian car market and grew its share to 13% last fiscal.
It is reported that from FY26 to FY30, the company will mainly focus on electric mobility, software-defined vehicles (SDVs), new-age powertrains, and feature-rich product launches. Tata Motors also remembered the challenges it faced in FY25, including increasing demand, higher dealer incentives, inflation in input costs, and rising competition in the SUV segment. Due to all these reasons, the company didn't hike the prices of its existing portfolio, especially the prices of toe-end trims.
A major pillar of Tata’s growth strategy is its EV division, which currently commands a 38% market share in India. The company plans to increase EV penetration to 20% of its passenger vehicle portfolio by FY27 and over 30% by FY30. Tata also expects its EV business to turn EBITDA-positive by FY26.
To reach this objective, Tata Motors plans to build a well-developed EV charging network, with over 1.8 lakh home chargers and 22,000 public charging points as of FY25. It now plans to increase this number to 1 million home chargers and 100,000 public stations by FY30. The company will also launch “Mega Chargers” with 120kW capacity across more than 40 mobility corridors, connecting over 100 cities in 20 states. These chargers will offer preferential tariffs and be accessible via the A.ev app.
Along with all these developmental plans, the company also has new product launches lined up, including the much-awaited Sierra SUV in the second half of FY26, along with several feature upgrades across its portfolio.
With increasing competition from global EV players like BYD, MG Motor, and Vietnam’s VinFast, followed by the new launches from major automakers like Mahindra, Hyundai, Kia, and Maruti Suzuki, Tata Motors is taking bold steps to secure its leadership in India’s growing EV market.
