Tata Motors PV eyes 15 per cent market share soon, targets 20 per cent by FY31

MUMBAI: Tata Motors Passenger Vehicles is revving up its market-share ambitions, with the company expecting to cross the 15 per cent mark in the domestic passenger vehicle market soon and targeting a 20 per cent share by FY31.

Tata Motors Passenger Vehicles managing director and CEO Shailesh Chandra told PTI that the passenger vehicle business has grown by nearly 40 per cent over the past year and is set to close September with electric vehicles contributing more than a quarter of its sales.

The passenger vehicle business became a standalone entity after Tata Motors completed its demerger on 1 October 2025. Chandra said the business is now focused on sustaining double-digit growth while widening its presence across vehicle categories and powertrains.

Chandra said Tata Motors PV is already close to a 15 per cent domestic market share and expects to cross that mark soon. The company is looking to add another five percentage points over the following five years as it works towards its FY31 target.

Tata Motors has previously outlined an ambition of reaching annual vehicle sales of 1.2 million units and a 20 per cent domestic passenger vehicle market share by FY31.

Chandra identified three broad levers for expanding the company’s share. These include entering segments where Tata Motors currently has no products, responding to changing consumer demand and affordability across price points, and increasing its presence in faster-growing powertrains such as EVs and CNG.

The company could also explore categories such as multi-purpose vehicles and certain lifestyle SUV segments where it does not currently have a presence, Chandra said.

Tata Motors expects electric vehicles and CNG vehicles to grow faster than the overall passenger vehicle industry. Chandra said the company already commands a higher market share in both categories than its overall passenger vehicle market share.

EVs, in particular, have become an increasingly important part of the company’s sales mix. Electric vehicles are expected to account for more than 25 per cent of Tata Motors PV’s sales as the company exits September.

The company also expects to have sold nearly 7.5 lakh passenger vehicles by the end of September, according to Chandra.

He attributed the recent growth partly to the pace of product launches and refreshes over the past year. Tata Motors PV plans to accelerate product interventions and invest in new categories to keep its portfolio competitive.

The strategy will also put greater emphasis on sustainable and zero-emission powertrains as the company looks to widen its addressable market.

Chandra said Tata Motors PV intends to sustain its growth momentum by expanding beyond its existing portfolio. New categories, more frequent product updates and a wider powertrain mix will form the core of its strategy as it moves towards the FY31 goal.

The approach comes as the company seeks to build on the momentum generated during its first year as a standalone passenger vehicle business.

At the same time, the automaker is keeping a close eye on costs. Tata Motors Passenger Vehicles is weighing another price increase as higher commodity costs continue to put pressure on margins.

The company is currently absorbing a significant portion of the cost increase while working on measures to reduce expenses.

Chandra said Tata Motors PV reviews pricing every month to assess whether another revision is required. If implemented, the next increase is likely to come in smaller steps rather than as a steep one-time hike, with the company looking to limit the impact on demand.

Tata Motors has already raised vehicle prices in September, although Chandra said it was too early to indicate when the next increase could be introduced.

For Tata Motors PV, the road to 20 per cent will therefore run on multiple lanes: new segments, faster product cycles and growing exposure to EVs and CNG, while keeping affordability and costs in check.