Tata Motors Passenger Vehicles expects to exceed a 15% share in the domestic market in the near future and achieve its previously stated goal of 20% by the 2031 fiscal year. This growth will be driven by the introduction of new products, more frequent updates, and an expansion of powertrain offerings.
Shailesh Chandra, Managing Director and CEO, stated in an interview with PTI that the passenger division, which became an independent entity after the asset split on October 1 of last year, is demonstrating significant growth. The business has increased by almost 40% over the last year, and as of September, the share of electric vehicles in total sales exceeded 25%.
The MD & CEO of Tata Motors emphasized that the company's main objective is to ensure double-digit growth while leading in sustainable and eco-friendly powertrains. He noted the necessity of continuing aggressive investments not only in new product categories to fill market niches but also in accelerating changes to the product line to maintain its relevance, competitiveness, and appeal to customers.
Commenting on the results of the past year, Chandra reported that thanks to numerous updates, restylings, and new launches, the company sold about 750,000 vehicles by the end of the current month (which marks the completion of one year). Thus, the company achieved nearly 40% growth over the year, and EV penetration exceeded 25%.
He added that the company is very close to achieving a 15% market share, which should happen very soon, but reaching the next five percent will take the next five years. Chandra reminded that the company's ambition is to achieve annual sales of 1.2 million units and a 20% market share by the 2031 fiscal year, which will require high flexibility in operations.
According to management, there are several avenues for increasing market share. These include segments where the company is currently absent, changes in demand and availability across different price ranges, and faster-growing powertrain types such as electric vehicles (EV) and CNG.
Chandra explained that there are three main growth vectors. The first is entering markets where the company currently has no presence, such as in the MPV (Multi-Purpose Vehicle) segments or certain lifestyle SUVs. The second vector is related to changes in purchasing power and demand in the country, allowing for the development of new offerings for untapped market niches. The third vector is powertrains: EVs and CNG are growing faster than the industry, and in these two segments, the company is a leader with a higher market share than its overall share.
