Tata Motors PV to invest up to ₹40,000 crore, targets 20% domestic market share and 12 lakh annual sales by FY31: MD Shailesh Chandra

Tata Motors Passenger Vehicles (TMPV) has outlined an ambitious growth roadmap, including planned capital expenditure of up to ₹40,000 crore over the next five years, as it targets a 20% share in India’s domestic passenger vehicle market by FY31.

According to an investor presentation, the company aims to nearly double its annual volumes to over 12 lakh units by FY31, compared with about 6.4 lakh units in FY26, supported by capacity expansion, portfolio additions and higher penetration of electric and CNG powertrains.

Capacity push and multi-powertrain strategy

TMPV Managing Director & CEO Shailesh Chandra stated the company is gearing up for a significant scale-up in operations across manufacturing and product development.

“Our aspirations remain strong. We are building towards sustained growth momentum and 20% market share over the next phase of growth,” Chandra said.

He added that the incremental growth will be driven largely by EVs and CNG vehicles as part of a broader multi-powertrain strategy.

“We will expand our production capacity for the next growth phase. Accelerated scale-up of manufacturing capacity will be aligned with our aspirations,” he said.

Product expansion and EV roadmap

The Passenger Vehiclemaking arm of Tata Motors plans to introduce six new models by FY31, increasing its total nameplates to 15 from the current nine, significantly widening its addressable market.

“Our product interventions will expand our addressable market. New nameplates will capture existing segments and also create new segments in the industry,” Chandra said.

He also highlighted a strong push into electrification, with TMPV targeting 30% EV penetration by FY31, supported by a portfolio of 10 electric models.

“The next phase of our growth will involve adding over 6 lakh incremental units. The multi-powertrain strategy will be the largest lever as our portfolio broadens,” he said.

Industry outlook and investment plan

Chandra said the domestic passenger vehicle industry is expected to expand to 64 lakh units annually by FY31, while EV volumes are projected to cross 10.11 lakh units, resulting in 15–20% EV penetration.

He also flagged a structural shift in pricing, with the median industry selling price expected to rise to around ₹15 lakh by FY31, up from ₹11–12 lakh in FY26, driven by richer product mix and higher technology adoption.

The company’s capex intensity is estimated at around 7% of revenue, with total investment projected between ₹37,500 crore and ₹40,000 crore from FY27 to FY31, front-loaded to support capacity creation and future growth.