Tata Motors lines up Rs 33-35k crore investment to boost PV business

New Delhi: Tata Motors plans to invest around Rs 33,000 crore to Rs 35,000 crore during FY26-30 on 30 product actions, including seven new model launches.

The Mumbai-based company also plans to invest in the introduction of advanced technologies and powertrains across its passenger vehicle portfolio.

It is looking at a market share of 16 per cent by FY27 (including EVs) and around 18-20 per cent in another 2-3 years.

The auto major expects the domestic passenger vehicle industry to grow to 60 lakh units annually by 2030.

"Looking ahead, we will strengthen our portfolio by FY30...7 new nameplates and 23 product refreshes will holistically enhance the portfolio," the company said in a presentation to analysts.

There would be intense action on investment spend (Rs 33,000 crore-Rs 35,000 crore during FY26-30) focused on innovative new products, software-driven vehicles (SDVs), advanced technologies and powertrains, it added.

The company plans to drive in products in the high-growth segments.

The company stated that in the PV segment, it aims to deliver robust market-beating growth with an always new and expansive portfolio.

Besides, it plans to expand its sales network to increase service capacity in line with volumes.

The automaker stated that it also aims to lead the industry in core emerging technologies, software-driven vehicles (SDVs).

Specifically for the EV business, the company expects to maintain its leadership position, with electric vehicles projected to account for 20 per cent of its total passenger vehicle volumes by the end of FY27, rising further to 30 per cent by FY30.

The company also aims to expand volumes in the entry segment – driving greater EV penetration as a city car.

Two new products – Harrier.ev and Sierra.ev – will help the company capture volumes in the growing segment, it noted.

Tata Motors also plans to structurally enhance the total cost of ownership through product interventions to capture the CNG fleet customer base.

The auto major is planning to enhance the charging network to instil confidence in buyers from smaller towns.

Overall, it aims at EBITDA breakeven in the overall EV business by FY26.

Elaborating on the industry trends, Tata Motors said its rapid growth in consumption, growing penetration of PVs in line with growing GDP and faster replacement cycles are some of the factors going to fuel the sector.

It also noted that the SUV body style would continue to dominate and the MPV body style is also likely to grow sharply in the domestic market.

The company also highlighted tapering hatchback shares due to higher entry prices and fewer new nameplate launches.