Tata Motors, India’s third-largest carmaker by sales, announced its ambitious plans to invest between Rs 16,000 crore and Rs 18,000 crore in its electric vehicle (EV) division by the financial year 2029-30 (FY30). This significant investment aims to bolster the company’s EV portfolio and infrastructure, with a target to capture a 20 per cent share in the passenger vehicle (PV) market by FY30.
Currently, Tata Motors holds a 13.81 per cent share in the Indian PV market in volume terms, according to data from the Society of Indian Automobile Manufacturers. The company already sells four electric car models and plans to launch six more by March 2026. This expansion is part of a broader strategy to mainstream EVs in India by offering a wider range of options, improving range, and achieving price parity with internal combustion engine (ICE) cars.
To support this growth, Tata Motors will increase the number of its e-car dealerships to 50 cities within the next 24 months. The company is also collaborating with private charge point operators such as ChargeZone, Glida, and Statiq to increase the number of public charge points across the country tenfold, aiming for about 100,000 by FY30. Presently, there are approximately 4,300 community charge points, which the company plans to expand significantly.
Tata Motors’ strategy addresses the challenge of range anxiety, enhancing the ease of EV ownership. Notably, only 10-15 per cent of Tata’s e-car customers currently use rooftop solar for charging, a figure the company aims to increase to about 50 per cent by FY30.
In the fiscal year 2023-24 (FY24), India saw a remarkable 91.37 per cent year-on-year growth in e-car sales, with 90,996 units sold, as reported by the Federation of Automobile Dealers Associations. Tata Passenger Electric Mobility, a subsidiary of Tata Motors, led the Indian e-car market with a 70.57 per cent share in terms of volume last year.
The company expects its EV division to reach Ebitda break-even by 2025–26. Ebitda break-even occurs when a company’s earnings before interest, tax, depreciation, and amortisation cover its operating costs, resulting in positive cash flow.
The Indian car market’s EV penetration is projected to rise to 20% by FY30, from approximately 2% in the previous fiscal year. Tata Motors aims for 30% EV penetration within its own portfolio by FY30, with its PV volume growth expected to surpass the overall market growth rate. The company targets a 16% market share by 2026-27 and aims for 18-20% within the following two to three years.
Other major automotive companies investing heavily in EVs include Mahindra & Mahindra (M&M), MG Motor India, and Maruti Suzuki India (MSIL). This collective industry push indicates a robust future for EVs in the Indian automotive landscape.
