Tata Motors Unfazed By Short-term Dip In Market Share of EVs; Aims To Remain the Leader
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Tata Motors' electric vehicle (EV) market share declined from nearly 70 percent in early 2024 to 53 percent in 2025. The company is facing stiff competition from new launches of JSW MG Motor India and M&M in the EV segment. With new launches in the pipeline, Tata Motors is confident of retaining its 50 percent market share in mid to long term. In FY26, the first two months have shown muted growth of one to two percent in EVs, but strategy is on, to get back on track. "We are going to launch two cars in each of the three subsegments of entry, mid and high end EVs. We have recently launched the Harrier EV in the high EV segment, and the response is very strong, we will soon come up with Sierra EV. So, FY26 will be a good year for us. With this strategy, we feel confident and in a steady state we should be able to hold ourselves at 50 percent market share," said Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
During the Investor Day call, the company revealed the aspirations to be at 18 to 20 per cent of overall market share in the long term. Commenting on the loss of recent market share in EVs, he said, "We lost market share because of the loss of nearly 67,000 cars in the fleet segment due to discontinuation of the FAME incentive, and some of the big fleet operators going slow. The first half of the year was muted for the personal EV segment because of a lot of negative news around electric vehicles globally, which only improved in the second-half."
Software defined vehicles are one of the key focal points as far as technology development is concerned and the company will be working towards making the tech features mainstream in EVs. The MD believes that most barriers to electrification are over in the full-size segment, but strategy is different for entry to mid level EVs. "We'll have to do certain intervention to overcome the residual barriers in the mid segment, where the intensity of competition is also very high. In the entry and mid segment, we still have 75 percent market share, and this is where we have to expand the market for enhancing our reach by overcoming the barriers of range anxiety, speed and giving value for money products," the MD said.
To ensure better penetration of EVs, the company is going full throttle into developing the charging infrastructure. The company is working on making community, home and office charging seamless. "In February 2025 we made a promise to double India's public charging infrastructure from its current count to 400,000 charging points by 2027 and we are aligned with it," he added.
Talking about the rare earth crisis, the MD said that currently the company is on track with inventories. On whether the crisis will hit the new EV launches, he explained, "There's a set of actions which are internal, which makes us comfortable to not change any of our launch plans. If there is significant deterioration of this issue going forward, then we might relook, but at this stage we have absolutely no trigger to change our plans as far as launches are concerned. We have already done that for Harrer EV and hopefully next month onward we'll start the dispatches, and the Sierra EV plan is also on track."
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