Tata Motors (TaMo) is aiming to gain market share across its passenger vehicle (PV) and commercial vehicle (CV) businesses — targeting a 40 per cent share in CVs and a 16 per cent share in PVs by 2027.
Meanwhile, it has already achieved earnings before interest, tax, depreciation, and amortisation (Ebitda) breakeven in its electric vehicle (EV) business at 1.2 per cent (up 830 basis points), ahead of its target of 2025–26 (FY26).
The company is already a market leader in CVs, with a 37.1 per cent share in 2024–25 (FY25).
In PVs, however, it aims to overtake its Korean peer Hyundai, with a long-term target of an 18–20 per cent share.
Currently, TaMo has a 14 per cent share of the PV market.
It has also lined up sizeable investments to this end — it aims to spend 2–4 per cent of its CV business revenues as capital expenditure/capex (Rs 1,500–3,000 crore) over the next few years.
It has also outlined a capital allocation of Rs 30,000–35,000 crore for the PV business over FY26 through 2029-30 (FY30), most of which will be sharply focused on electric mobility.
In FY25, TaMo spent 2.8 per cent of its CV revenues, or Rs 1,900 crore, on capex, and 5.8 per cent of its PV revenues, or Rs 2,800 crore, as capex.
The carmaker said it aims for the EV business to have a 20 per cent penetration in its portfolio by 2026-27 and take that up to 30 per cent by FY30, with continued improvements in margins.
The EV business is well-funded for the next three years, TaMo said in its investor presentation, adding that it is aiming to lead the transition towards software-defined vehicles in India.
The company has committed to a capex of Rs 16,000–18,000 crore between FY25 and FY30 for its EV portfolio.
The company has also benefited from government production-linked incentives, which amounted to Rs 102 crore for 2023-24 and Rs 250 crore for FY25.
Two existing models — Tiago.ev and Punch.ev — qualify for benefits under domestic value addition norms.
Additional models like the Nexon.ev and Harrier.ev are expected to qualify for certification in FY26.
Tata Motors added that it plans to “converge” its cost structure for EVs with internal combustion engine vehicles and deliver positive Ebitda.
The EV business has maintained over 55 per cent market share, but it has been losing ground in the electric space in recent years as new launches from rivals Mahindra & Mahindra and JSW MG Motor India have taken volumes away from the market leader. Its market share has dropped from 84 per cent in 2022-23.
Overall, it remains optimistic that the Indian PV industry will grow to 6 million units by FY30.
By then, it plans seven new launches and 23 facelifts and refreshes.
As for CVs, the industry is expected to grow at a 3–5 per cent compound annual growth rate (CAGR) through FY30, supported by rising freight demand and infrastructure spending.
Road freight movement (in billion tonne-kilometre) is expected to grow at a 5–7 per cent CAGR.
Freight rates rose by 14 per cent, and transporter profitability improved by 5 per cent between January 2023 and May 2025, indicating stronger fleet economics.
The overall domestic CV industry was flat in FY25, but TaMo is confident about the long-term growth drivers.
TaMo is also undergoing a demerger of its PV and CV businesses.
The appointed date for the split is July 1, with separate listed entities expected between September and December 2025, subject to final regulatory approvals.
The PV arm, which will include Jaguar Land Rover, will be renamed Tata Motors Passenger Vehicles (TMPVL), while the CV company will retain the Tata Motors name.
Between September and December this year, the company is hoping for the final National Company Law Tribunal approval for the demerger, after which the existing listed company will trade ex-CV business, and TaMo will be renamed TMPVL.
The new CV company will be listed separately thereafter.
Following the split, shareholders will receive an equal number of shares in both companies.
Common assets will be allocated in a 60:40 ratio between the PV and CV arms, reflecting their relative asset base.
The demerger is structured to be tax-neutral.
© 2025