Tata Motors accelerates EV strategy to reclaim market share

Tata Motors is ramping up its electric vehicle (EV) game with bold new plans to reclaim its leadership position in India’s EV market. With competitors like JSW MG Motor and Mahindra & Mahindra (M&M) intensifying their presence, Tata is gearing up to counter with an aggressive product strategy, technology upgrades, and distribution expansion.

Ambitious Target: Aiming for 50% Market Share

At the recent Investor Day in Mumbai, Shailesh Chandra, MD of Tata Passenger Electric Mobility, outlined the company’s vision. Tata Motors plans to regain 50% market share in the EV space over the mid to long term. This comes after its EV market share slipped from 81% in FY23 to 35% by May 2025, as rivals launched new models and grabbed consumer attention.

Expanding EV Range and Achieving Price Parity

Tata Motors has set clear goals to make its EVs more appealing to a wider audience. The company aims to:

• Increase EV driving range by 60%, addressing range anxiety among potential buyers.

• Achieve price parity with internal combustion engine (ICE) vehicles, a major barrier for EV adoption so far.

• Expand sales reach four-fold, growing from 230 locations to 1,000 cities and towns in the next 4-5 years.

The company has already made strides toward price parity. For example, the electric Nexon Creative automatic variant costs ₹14.79 lakh, close to its petrol counterpart at ₹14.32 lakh. Similarly, the newly launched Harrier EV’s entry variant is priced at ₹22.95 lakh, even lower than the ICE version at ₹23.06 lakh.

Bespoke EVs and Premium Avinya Range in the Pipeline

Tata Motors plans to launch two new bespoke EV models in the next 18 months. These will cater specifically to EV buyers, rather than adapting existing ICE platforms. Additionally, the company’s premium Avinya brand will see its first product launch by end-2026, marking Tata’s foray into the high-end EV segment.

Tackling Key Market Segments

Tata Motors is focusing on improving its standing in the mid- and high-end EV segments:

• In the mid-segment (₹12-20 lakh), where models like Nexon EV and Curvv EV operate, Tata holds just 36% share. The company plans to hit the sweet spot with better pricing, features, and range.

• In the premium segment (above ₹20 lakh), the Harrier EV with a range of over 500 km aims to attract buyers by addressing concerns around range and charging infrastructure.

For the entry-level city EV segment, where Tata holds 78% share with models like Tiago EV and Punch EV, the goal is to extend range from 250 km to 350-400 km, while keeping costs low and competitive.

EV and Passenger Vehicle Arm Merger on the Cards

Tata Motors is also rethinking its business structure. The company is considering merging its EV division with its passenger vehicle (PV) business, which could offer better flexibility and operational synergies in the future. Additionally, the company may separate the distribution network and branding of EVs from conventional passenger cars.

Big Investments to Power the EV Push

To fuel these ambitious plans, Tata Motors has earmarked ₹16,000 crore in investments. Funding will come from:

• Business cash flow

• Production Linked Incentive (PLI) scheme revenues

• Support from the passenger vehicle arm

As per PB Balaji, Group CFO, the eventual merger of the EV arm into the PV business will give the company greater adaptability as the market evolves.