Tata Motors To Invest Up To Rs. 35,000 Crores In Passenger Vehicle Business By FY2030

Tata Motors to invest Rs. 35,000 crores in PV and EV expansion by FY2030

Tata Motors has announced plans to invest Rs. 33,000 to Rs. 35,000 crore in its passenger vehicle and electric vehicle business between FY2026 and FY2030. The investment will support the development of new products, next-generation powertrains and software-defined vehicles, as the company looks to strengthen its competitive position in India’s evolving automotive landscape.

As outlined in its recent investor presentation, Tata Motors will undertake around 30 product updates over the next five years, including the introduction of seven all-new nameplates and 23 refreshed models. The upcoming new models will include one under the Sierra badge, two from the Avinya EV range, two new internal combustion engine models and two additional EV offerings.

This expansion will increase Tata Motors’ portfolio to more than 15 nameplates across different powertrain technologies by 2030, compared to eight at present. A significant share of the investment, about Rs. 16,000 to Rs. 18,000 crores, has been allocated specifically for the EV segment, which recently turned profitable at the EBITDA level in FY2025.

Tata Motors is targeting a passenger vehicle market share of 16% (including EVs) by FY2027, with a goal to grow that figure to 18-20% by FY2030. Despite facing a dip in volume and share during FY2025 following several years of growth, the company remains focused on regaining momentum through product innovation and wider consumer reach.

In the electric vehicle segment, the automaker plans to maintain its leadership despite mounting competition. Tata expects EVs to account for 20% of its overall passenger vehicle sales by FY2027, increasing to 30% by FY2030. The company’s EV market share, once at 80-85%, has come down to approximately 55% due to newer players like JSW MG Motor and Mahindra’s updated EV range.

Tata’s investments come amid broader industry moves. Maruti Suzuki’s parent is set to invest Rs. 70,000 crore in India for expansion and product development. Hyundai India is investing Rs. 18,000 crore in new products and manufacturing, while Mahindra is planning 16 new SUV launches—nine ICE and seven EVs—by 2030.