Tata Motors, the country’s largest manufacturer of zero-emission cars, has revised its long-term predictions for electric vehicle sales penetration from the previously anticipated 50% to 30% in light of the slowing growth of electric vehicles in India. Even with this change, the company’s projected penetration by the end of the decade is likely to be higher than the projected market average of 20%.
At the Investor Day 2024 presentation on Tuesday, Tata Motors stated that by the fiscal year 2030 (FY30), it aims to have over 30% of its lineup comprised of electric vehicles. Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, had stated that he aimed for a 50% penetration rate by 2030. This change comes after his previous comment.
Moreover, Niti Aayog’s 2022 study projected that by the end of the decade, the penetration of shared electric cars would reach 20–25 percent and private electric four-wheelers would reach 9–11 percent, both of which are still below Tata Motors’ targets.
By FY30, the Indian passenger vehicle industry is expected to achieve a sales volume of 6 million units annually, according to the company’s prediction, with Tata Motors targeting an 18–20% market share. This translates to a yearly car sales volume of about 1-1.2 million, of which 30%, or roughly 300,000 to 400,000, would be electric vehicles—a substantial increase over the current yearly sales volume of 73,000 units.
With a 73% market share and five models, Tata Motors presently commands a commanding position in the electric vehicle industry. In 2023–24, electric cars made up 13% of the company’s overall automobile sales.
Monthly sales have been stable at 5,500 to 7,000 units in recent quarters, despite the arrival of the refreshed Punch EV and subsequent improvements to the Nexon EV. There was a decrease in sales in April and May of FY25 as compared to the prior year.
The initial spike in early adopters seems to be leveling off as obstacles to increased acceptance include the charging network, driving range, and cost, which is more than with standard internal combustion engines.
Presently, 15% of passenger cars sold have CNG powertrains, while only 2% have electric powertrains. Tata Motors expects a 20% increase in electric powertrain penetration and a 25% increase in CNG penetration by the end of the decade. By FY30, the company intends to make a sizable capital investment of Rs 16,000–18,000 crore in its electric vehicle sector. By the end of the decade, it hopes to have 10 models in its range. It also predicts that starting in FY26, the electric vehicle industry will turn a profit.
Tata Motors also plans to expand its “.ev” retail channel, which is dedicated to selling electric vehicles, to more than 50 major cities over the course of the next two years. By growing its collaborations to assist the installation of public and community EV chargers throughout India, the carmaker is also concentrating on improving the infrastructure for charging.
