Tata Motors PV plans Rs 40,000 crore capex, eyes 20 per cent market share by FY31
Tata Motors Passenger Vehicles plans up to Rs 40,000 crore capex over five years to expand capacity, launch six new models and target 20 per cent market share by FY31. The company expects strong EV and CNG-led growth in coming years
New Delhi: Passenger Vehicles Ltd has lined up capex of up to Rs 40,000 crore in the next five years as it seeks to garner 20 per cent share in the domestic market by nearly doubling its volumes to over 12 lakh units annually by FY31, according to its investor presentation.
The company plans to launch six new models by FY31 while it aims to have 13 lakh units annual production capacity within two to three years, its Managing Director & CEO Shailesh Chandra said in the presentation.
The domestic passenger vehicle industry is expected to grow to 64 lakh units annually and electric vehicle (EV) volumes are projected to touch 10.11 lakh units annually by FY31, reaching 15-20 per cent EV penetration, he said.
The overall median industry selling price will increase to around Rs 15 lakh from Rs 11-12 lakh in FY26, Chandra noted.
Tata Motors Passenger Vehicles (TMPV) has also set an ambition of 30 per cent EV penetration for itself by FY31, with a portfolio of 10 EV models.
“Going forward, our aspirations remain strong. We are building towards sustained growth momentum and 20 per cent market share over the next phase of growth,” Chandra said.
The company has witnessed a 9 per cent increase in its market share from FY20 to FY26 and the FY26 to FY31 aspiration is for a 5-6 per cent increase in market share, he added.
“The next phase of our growth will involve adding over 6 lakh incremental units. Multi-powertrain strategy will be the largest lever as our portfolio broadens,” Chandra noted, adding that a significant proportion of the incremental volume by FY31 will come from EV and CNG.
From 6.4 lakh units in FY26, the company is looking at over 12 lakh units in FY31 through industry expansion, portfolio enhancement and maximisation, along with leveraging EV and CNG powertrains, which are high-growth and high-market-share segments, he added.
On portfolio expansion, Chandra said “six new nameplates” will be added by FY31, taking the company’s total to 15 nameplates, up from nine at present.
“Our product interventions will expand our addressable market. New nameplates will capture existing segments and also create new segments in the industry,” he said, adding that three PV/EV nameplates will be in expansion in high-growth segments, while two EV models will be in “expansion in white spaces”.
In order to meet TMPV’s growth aspirations, Chandra said, “We will expand our production capacity for the next growth phase. There will be accelerated scale-up of manufacturing capacity in line with our aspirations.” The company will add 4 lakh units of additional annual capacity to its current 9 lakh units, so that within two to three years, it will have 13 lakh units of annual capacity, he added.
The capex, as per the investor presentation, is estimated to be around 7 per cent of the revenue till FY31. In the five-year period from FY27 to FY31, the capex is expected to be around Rs 37,500 crore to Rs 40,000 crore with a step-up in initial years for capacity expansion.
Commenting on the overall domestic PV industry growth, Chandra said it will “grow to 6.4 million and the price-volume curve will shift upwards.”
Structural demand drivers will drive 6-7 per cent CAGR, while rising incomes will pull the median price higher, he added. From 47 lakh units in FY26, the industry is projected to touch 64 lakh in FY31 and the median industry selling price will be around Rs 15 lakh by FY31, up from Rs 11-12 lakh in FY26, having grown from Rs 7-8 lakh in FY21.
Chandra pointed out that in line with global trends, the tech quotient in vehicles will increase.
The evolving Indian customer base is increasingly looking for a modern and aspirational experience, he added.
Stating that the future is clearly “multi-powertrain”, Chandra said, “By FY31, over 45 per cent of the industry will be CNG & EV, driven by both pull and push factors.” The EV industry will scale to over 10 lakh units by FY31 as EV volumes will increase as customer preference grows, proposition strengthens and the ecosystem matures, he noted.
In FY27, EV volumes are expected to be around 3.5 lakh units, up from 2.2 lakh units in FY26.
