Tata Motors held over 55% market share in the domestic EV passenger vehicle market last fiscal year. However, that has dropped to around 40-41% currently. This fall is mainly due to increased competition and reduced fleet sales. Despite the drop, the company remains confident of recovering.
The company’s senior management has disclosed to media reporters that the company’s aim is to sustain and regain a 50% market share over the next 18–24 months and beyond. This will be achieved through a wider product portfolio that meets the changing expectations of customers.
At 11:50 AM, Tata Motors' share price was up 1.91% and was trading at ₹732.
The electric car market in India is now divided into four key segments:
Tata Motors already dominates the ₹8–12 lakh segment with its Tiago.ev and Punch.ev, holding 75% of the market. The company plans to strengthen this position further by improving the value of these vehicles.
In the ₹12–20 lakh segment, where competition is fierce, Tata’s market share has dipped to around 33–35%. The company is focusing on offering stronger options with its Nexon.ev and the upcoming Curvv.ev to compete better.
One of Tata’s major future steps is entering the premium EV segment — vehicles priced above ₹20 lakh. This is where Tata currently has no offerings. However, the upcoming Harrier.ev and Sierra.ev will fill this gap and help boost volumes further.
Fleet sales dropped significantly after the FAME subsidy was withdrawn. Tata is now focusing on making the total cost of owning an EV in the fleet segment equal to or lower than CNG vehicles. The goal is to make electric vehicles more appealing to commercial buyers once again.
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Tata Motors is determined to regain its leadership in the EV space. By launching new models, entering higher price segments, and improving the cost advantage for fleet owners, the company aims to bounce back to a 50% market share. The road ahead is competitive, but Tata’s strategy is clear — innovate, expand, and adapt.
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Published on: May 26, 2025, 11:59 AM IST
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