MUMBAI: 9th June 2025: With almost Rs 18,000 crore allocated to EVs, Tata Motors has revealed an investment plan of Rs 35,000 crore for its passenger vehicle business through FY30. The strategy, which is supported by aggressive localisation and retail expansion, covers electric cars, buses, and small commercial vehicles.
By doing this, Tata hopes to strengthen its position as India’s top EV manufacturer while promoting profitability and widespread adoption.
The strategy comes as Tata Motors negotiates a challenging but exciting environment that includes growing domestic demand for environmentally friendly transportation, a more stringent regulatory framework, and changing global attitudes towards EVs that are characterised by cost pressures and subsidy withdrawals.
Despite these headwinds, Tata Motors is determined to mainstream electric mobility in India with one of the country’s largest automotive capex pushes.
In the company’s investor presentation, Balaje Rajan, Chief Strategy Officer of Tata Passenger Electric Mobility Ltd (TPEML), stated, “Our long-term EV strategy is to mainstream EVs across segments and geographies.” “We are focused on strengthening our product portfolio, scaling EV adoption, and making EVs accessible across India,” he further added
Even though passenger EVs receive most of the attention, Tata Motors is already the biggest manufacturer of electric buses in India, having installed over 3,600 of them overall as of FY25, covering more than 34 crore e-bus kilometres in 11 cities. With the help of more than 600 chargers and a 160 MW connected charging load, the fleet is a part of a larger initiative to electrify public transport in India’s metro areas.
With Tata’s asset-light model, which combines direct sales to state transport units with consortium partnerships that limit Tata’s capital exposure while guaranteeing consistent revenue through operational and maintenance contracts, the company’s electric bus deployment has increased by 4.5 times.
The strategy has demonstrated the profitability potential of extensive public fleet electrification by contributing to a 1.8x EBITA growth in Tata’s e-bus operations during FY24 and FY25.
With higher payload vehicles like the Intra EV (1,500 kg payload), which it intends to launch this year, Tata Motors is attempting to increase EV penetration in the small commercial vehicle (SCV) market.
Sales of its ACE EV increased by 42% in FY24, but since FAME subsidies ended, growth has slowed. Tata is growing its Fleet Edge connected vehicle platform for commercial vehicles from 650,000 to 800,000 vehicles and growing its EV service network from 150 to 190 service stations in order to encourage adoption.
The ₹16,000–18,000 crore set aside for EVs will assist Tata Motors in developing products with a real-world range of more than 500 km, increasing localisation, and lowering the cost of batteries and componentry.
This is crucial since Tata aims to achieve price parity with ICE cars, which would be a turning point for the widespread adoption of EVs.
EVs for passengers continue to be the strategic gem. Tata is moving forward with a slew of new models, such as the Curvv.ev, and high-end products like the Harrier EV and Sierra EV, despite FY26 getting off to a slow start, primarily because of the removal of FAME subsidies for fleet buyers and a lacklustre global EV sentiment.
Speaking to the company’s investors, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Limited (TMPVL) and Tata Passenger Electric Mobility Limited (TPEML), stated, “In EVs, we sustained market leadership with 55%+ share, but we faced stress, in line with key headwinds for the EV industry.”
In order to support its expanding EV fleet, Tata has committed to installing more than 500 mega EV chargers across the country as part of a parallel effort to expand the charging infrastructure. To lower fleet emissions from 130 g/km in 2022 to 113 g/km by 2027, the company is also in line with the forthcoming Corporate Average Fuel Economy (CAFE) Phase II standards.
Tata is placing significant bets on distribution scale in addition to product launches. In order to bring EVs closer to Tier 2 and Tier 3 consumers, who are anticipated to propel India’s next phase of EV growth, it intends to expand its network of Tata.ev stores from the current 230 cities to over 1,000 cities.
TPEML, a specialised EV subsidiary that Tata Motors spun out in FY22, is where the EV play is located. While still utilising Tata’s larger automotive ecosystem, this structural separation gives the business the freedom to raise capital and concentrate only on growing EV operations.
With improved in-car technology, ADAS features, and connected cockpits increasingly playing a role in differentiating its future offerings, Tata Motors has also made clear its long-term commitment to software-defined vehicles (SDVs).
Tata has set ambitious internal financial goals for FY30, including positive free cash flow (FCF) and a 10% EBITDA margin for its consolidated PV and EV business. Reaching these targets would put the company among the most financially stable automakers in the global EV transition.
Tata’s first-mover advantage and integrated EV strategy across the passenger, commercial, and fleet segments could prove crucial as competitors like Mahindra & Mahindra, Hyundai, and foreign firms like BYD boost their EV focus in India.
For Tata Motors, the future is not only electric—it’s interconnected, software-driven, and increasingly built in India.
