Tata Motors aims 20% share of Indian PV market by FY30, bets big on SUVs and EVs

Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra revealed that the company is taking a multi-pronged approach to achieve its goal by the end of this decade, reported PTI. The Tata Motors top official reportedly said that it is gearing up to launch a range of new cars, both in the conventional petrol and diesel engine segments and electric vehicle categories as well.

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Chandra also revealed that the automaker is betting big on SUVs and electric vehicles to achieve its target of capturing a 20 per cent share in the Indian passenger vehicle market by FY2030. He said that the Indian PV market will witness a growth trend of six per cent from now onwards, between FY25 and FY30. The company believes that this growth will be driven by factors like rising disposable income and shorter vehicle ownership periods. The auto company also believes that the share of upgraders and additional car buyers will increase and that has been the trend in the last few years and the first-time buyer share has been reducing.

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An 18,000 crore investment plan fuelling EV dream

Tata Motors sees electric vehicles as a key growth engine for the Indian passenger vehicle market as well as for itself in the coming years. The automaker currently holds the lion’s share in the Indian electric PV market thanks to models like Nexon EV, Punch EV, Tigor EV and Tiago EV. The auto major aims to continue this dominance. In fact, the company aims to have 30-40 per cent of its overall PV sales coming from electric vehicles by FY2030.

In order to do that, Tata Motors plans to invest about ₹18,000 crore in its electric vehicle business over the next five to six years, which will eventually fuel its EV dream as well as the PV market share ambition. This investment plan includes the launch of new electric cars, expansion of its EV charging infrastructure etc.

Tata Motors is expecting the stringent CAFE 3 (Corporate Average Fuel Efficiency) norms that are set to kick in from 2027 to boost the sales of electric vehicles. Stating that new technology features and upgrades have been the trend in the past few years and are a natural progression, Chandra said, “The one which will be the most disruptive in the industry in the next five to six years will be the stringent CAFE norms, that is CAFE 3 and beyond.” He also added that certain OEMs have been able to meet CAFE 2 norms with zero or even low penetration of EVs. “In the new norms it will become extremely difficult, if not impossible to comply without EVs in the mix as the companies will face significant penalties and also will face the risk of adverse impact on brand image,” the Tata Motors official further said.

SUV mania to further propel Tata Motors’ ambition

Besides the electric vehicles, Tata Motors is also betting big on SUVs and crossovers. Over the last couple of years, the Indian PV market has been witnessing a maddening rush for SUVs and crossovers, which is in line with the global trend. Tata Motors being a major player in the Indian passenger vehicle market is also leveraging this situation. The carmaker sells some of the popular SUVs in India, which include the Nexon, Punch, Safari and Harrier. Some of these models are available in multiple powertrain options, which allow the automaker a wider sales penetration opportunity.

Now, in an attempt to achieve its target of capturing 20 per cent of Indian PV sales by FY2030, Tata Motors is betting big on SUVs. The automaker has already revealed that it will bring new models into the market in the coming years, which will include the Curvv and Sierra. Concept versions of these cars have been already showcased at different events in the country and production models will be launched in the near future. Both the Tata Curvv and Tata Sierra would be introduced in both ICE and EV variants.

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Speaking about the focus on SUVs, Chandra said that the growing preference for SUVs and the intense launch actions that the company is expecting in the SUV space will keep the segment’s share high and that will take place at the expense of hatchbacks and sedans. “The growing preference for SUVs and the intense launch actions that we are expecting in the SUV segment will keep the segment share of SUVs high and it will happen at the cost of hatches and sedans,” he said, further adding, “We aim to increase our addressable market to 80 per cent by FY30 with the addition of new nameplates. We have already announced the launches of CURVV and Sierra over the next two years which will help us capture the growing mid-SUV segment.”

A multi-powertrain portfolio in focus

Tata Motors is not focusing only on ICE vehicles or EVs. Instead, the auto company is focusing on a diverse range of powertrain options for its product portfolio, which will cater to a wider range of customers, as per their choices. Besides focusing on petrol and diesel-powered vehicles alongside electric vehicles, Tata Motors is aiming big for CNG cars as well. The automaker is among the only few OEMs in India that sell CNG cars.

Chandra said Tata Motors will enhance its multi-powertrain offerings to leverage industry powertrain shifts towards greener powertrains, such as EVs and CNGs which are expected to reach 20 per cent and 25 per cent of the total market, respectively by FY2030.

First Published Date: 27 Jun 2024, 08:54 AM IST