Tata Motors Passenger Vehicles sets ambitious targets as it leverages product refreshes and flexible manufacturing to sustain growth through FY2027, led by a strong focus on electric and alternative powertrains.
Tata Motors Passenger Vehicles is entering the second half of FY2027 with confidence that its mix of petrol and diesel, CNG and electric models can keep it growing faster than the broader market. In a virtual conference on the company’s first-quarter FY27 results, managing director and chief executive Shailesh Chandra said the business is leaning on product refreshes, flexible manufacturing and disciplined investment as it tries to extend the momentum built in the last financial year.
The company’s optimism rests partly on its recent performance. Tata Motors Passenger Vehicles grew 14.1% in FY2026, about twice the industry’s 7.9% expansion, and then delivered 45% growth in the first quarter of FY2027, well ahead of the market’s 25.9%, according to the company. Industry volumes are still expected to rise, but Tata Motors believes the second half could be tougher for the sector because of a high comparison base and cost pressure, even as its own retail demand remains supported by lower inventories and waiting periods of 4-6 weeks.
Chandra has made alternative powertrains central to the strategy. Industry electric-vehicle penetration has reached about 8%, and Tata Motors expects it to move closer to 10% by the end of FY2027, while its own EV mix is targeted at above 40% for the year. CNG is also playing a larger role: the company said the share of CNG in its sales mix is about 27%, compared with roughly 22% across the industry, and the broader CNG network is forecast to expand sharply as more stations come online. Hybrid vehicles remain a smaller part of the market at around 2% to 2.5%, and Tata Motors said it would consider them if customer demand strengthens.
The group is also betting that capacity and product breadth will help it absorb near-term headwinds. Tata Motors said its EV production set-up is flexible enough to scale, with capacity already raised from 9,000 units to as many as 15,000 recently, and further increases planned. The company also pointed to temporary supply constraints affecting the Sierra SUV and cited commodity inflation as a drag on margins, but kept its capital expenditure plan unchanged at 6% to 8% of revenue. That spending is set to go into new products, technology and capacity, as Tata Motors seeks to defend share at home and expand in export markets.
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