Tata Motors bets on new Harrier EV to own over 50% of market share

Business Standard

03-06-2025

Tata Motors (TML), the leader in India's electric passenger vehicle market, is betting on its new off-roader electric high SUV, the Harrier EV, along with other offerings in the entry and mid-level EV segments, to sustain over a 50 per cent share of India's 100,000-unit EV market. The market is expected to grow by more than 50 per cent in 2025-26, crossing the 150,000-unit mark.
The company also claimed it does not face any immediate crisis from the rare-earth metals supply disruption from China.
The Harrier EV, aggressively priced with a starting price of Rs 21.49 lakh, is expected to compete with Mahindra & Mahindra's XUV 9e, which starts at Rs 21.9 lakh. Speaking to Business Standard, Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility Managing Director Shailesh Chandra said the SUV segment has grown over the years to command 55 per cent of the passenger vehicle market, with the high-SUV segment (vehicles priced over Rs 20 lakh) accounting for around 25,000 units a month.
'This is a sizeable segment that attracts more sophisticated customers who are mostly upgraders from earlier cars and are looking for better performance, quality, and new technology,' he added.
Chandra explained that in the overall EV market, entry-level EVs priced below Rs 12 lakh (such as the Tiago EV) sell around 3,500-4,000 units a month, while mid-size EVs (like Punch and Nexon) sell about 6,000 units monthly. The Punch straddles the entry and mid-size EV segments, typically offering a 300-400 km range and catering to maximum volumes and competitive intensity, as it functions as both a city and intercity car. The new category of high SUVs as EVs, where the Harrier has been positioned, is expected to break barriers for EV adoption.
'New customers who have not considered EVs so far will come into the fold due to faster charging speeds (the Harrier EV, for example, can add 250 km of range in 15 minutes), more range (500-600 km), which is comparable to any ICE vehicle, and thus EVs will become more mainstream,' he said.
TML has faced stiff competition from players like JSW MG Motors and Mahindra in recent months, with its market share dropping from over 70 per cent to 55.4 per cent at the end of FY25. According to Vahan data, Tata Motors' EV market share in the first two months of FY26 stands at around 37.9 per cent, down 13.8 per cent year-on-year. Meanwhile, M&M and MG have gained, with market shares of 24.4 per cent and 31.2 per cent respectively.
Chandra said he is optimistic FY26 will be their best year yet, aligned with industry growth. 'The industry might grow by over 50 per cent, and we are entering a new segment which should give us more volumes. We are also taking action in existing segments that were problematic last year, which should help us grow volumes,' he said, adding the goal is to hold a 50 per cent EV market share in the mid to long term.
Asked about exports as the domestic market becomes more competitive, Chandra said exports will be a mid-to-long-term focus, but improving the value proposition of existing products, including entry-level models, is the immediate priority. The plan is to expand the entry-level market from 3,500 units a month to 6,000 units. 'We are also working on the fleet segment to make it comparable with the value proposition of CNG vehicles,' he noted. Post-FAME subsidies, TML has seen a significant decline in fleet sales, which once accounted for nearly 20 per cent of its EV sales.
The Harrier EV, loaded with features such as a 540-degree surround view, transparent mode, blindspot view, digital key (via smartwatch or phone), auto-park assist, and summon mode, will be manufactured at the company's Pune plant.
While Chandra did not disclose production targets, he said they have plans for a rapid ramp-up if needed. He does not expect the Harrier EV to cannibalise sales of the Harrier ICE variant. 'We have experience with a multi-powertrain strategy in other products. For example, when the Punch ICE launched in 2021, it sold 8,000 units a month. Now, with EV and CNG variants, sales have doubled to 16,000 units a month. So the segment expands, and that's how I see this,' he said. He expects EVs to achieve double-digit penetration in the high SUV segment in the coming quarters.