After record 6.42 lakh sales in FY26, Tata Motors PV targets industry-beating growth despite global headwinds: N. Chandrasekaran

Tata Motors Passenger Vehicles Ltd (TMPVL) is targeting industry-beating growth in FY27 after reporting record annual sales of around 6.42 lakh cars and SUVs in FY26, with Chairman N. Chandrasekaran saying the company remains confident despite an uncertain global economic and geopolitical environment.

The optimism follows a year in which the company grew nearly twice as fast as the domestic passenger vehicle industry, expanded its market share and strengthened its leadership in electric vehicles. In his message to shareholders in the company’s FY26 annual report, Chandrasekaran said Tata Motors would look to build on this momentum through a pipeline of new products and a multi-powertrain strategy.

“We enter FY27 with confidence, supported by a robust pipeline of new launches and multi-powertrain offerings. Our focus will remain on delivering industry-leading growth, deepening our commitment to safety, sustainability, quality and customer delight, while becoming resilient and staying agile amid macroeconomic and geopolitical uncertainties,” noted Chandrasekharan.

Sales growth outpaces industry

FY26 marked the first year of Tata Motors’ passenger vehicle business as a standalone listed entity following the demerger of the commercial vehicles division. During the year, the company sold about 6.42 lakh cars and SUVs, up 15.3% from the previous year.

The performance enabled Tata Motors to emerge as the country’s second-largest passenger vehicle manufacturer in the second half of FY26, with a market share of 14.1%.

According to Chandrasekaran, growth was driven by a broad-based product portfolio and rising consumer acceptance of alternative powertrains. “Growth during the year was broad based, marked by a clear shift in customer preference and sales momentum towards greener powertrains,” he said.

The company’s Nexon and Punch models ranked among the industry’s top-selling vehicles during the second half of the year, while the newly launched Sierra generated strong customer bookings.

EV sales jump 43%; revenue rises 21%

Tata Motors retained its leadership in India’s electric passenger vehicle segment, crossing cumulative sales of 2.5 lakh EVs. During FY26, the company sold more than 92,000 electric vehicles, a 43.4% increase over the previous year, while holding a 40.2% market share.

“The sustained demand supports the ICE portfolio and the continued momentum in EVs reflects growing customer confidence in new technologies, underscoring the strength of a balanced, multi-powertrain strategy,” Chandrasekaran said.

The passenger vehicle business reported revenue of ₹58,465 crore in FY26, up 20.7% year-on-year. Profit before tax rose 32.6% to ₹1,436 crore, while net cash stood at ₹6,710 crore at the end of the fiscal year.

JLR recovery, collaboration to continue

Chandrasekaran said Tata Motors Passenger Vehicles and Jaguar Land Rover would continue collaborating on manufacturing, technology and talent to improve efficiency and capital allocation. He cited the commencement of operations at the Panapakkam facility in Tamil Nadu as an example of the benefits of the partnership.

For JLR, FY26 was a difficult year as higher tariffs and a cyber incident that halted production for five weeks weighed on performance. Revenue at the British luxury vehicle maker declined 20.9% to GBP 22.9 billion.

“TMPV and JLR will continue to collaborate on manufacturing, technology and people, enhancing scale efficiencies, accelerating learning and reinforcing capital discipline,” Chandrasekaran said.

He added that JLR would focus on lowering its breakeven level to 300,000 units over the next two years while advancing new product launches, including the Range Rover Electric and Jaguar Type 01.

At the consolidated level, Tata Motors reported revenue of ₹3.36 lakh crore and profit before tax of ₹2,519 crore in FY26. Chandrasekaran also reiterated the group’s commitment to achieve net-zero emissions by 2040, with continued investments in electrification, products and mobility ecosystems.