Tata Motors Ramps Up EV Game to Reclaim 50% Market Share

Tata Motors is revving up its electric vehicle (EV) strategy after seeing its market share fall from 81% in FY23 to 35% in May 2025. To counter growing competition from rivals like JSW MG Motor and Mahindra & Mahindra, the company is making big changes, ranging from new model launches and longer-range vehicles to wider market coverage and price adjustments.

Tata’s Plan to Reclaim EV Leadership

Aiming for 50% Market Share Again

Shailesh Chandra, MD of Tata Passenger Electric Mobility, said the company aims to regain a 50% share of the EV market in the medium to long term. This comes as part of an ambitious growth plan revealed during Tata’s Investor Day in Mumbai.

What’s Changing?

1. Bigger Range, Better Value

Tata plans to increase the driving range of its EVs by 60%.

• Entry-level EVs like Tiago and Punch, currently offering 250 km, will soon deliver 350–400 km.
• The premium Harrier EV already offers 500+ km range.

2. Price Parity with Petrol Cars

Tata has managed to bring EV prices close to petrol variants using more local parts, cheaper batteries, and cost savings.

• Example: Nexon EV (₹14.79 lakh) vs Petrol (₹14.32 lakh)
• Harrier EV (₹22.95 lakh) vs Petrol (₹23.06 lakh)

New EV Launches and Expansion

1. Bespoke and Avinya EVs Coming Soon

• Tata will launch custom-designed ‘bespoke’ EVs in the next 18 months.
• The first Avinya premium EV will launch by end-2026.

2. Massive Network Growth

• Tata aims to grow its EV network from 1,100 outlets across 230 locations to cover 1,000 cities and towns within the next 4 to 5 years.

Structural Changes in Business

Tata is considering separating the sales and branding of its EVs from regular passenger vehicles. A future merger of the EV division with the passenger vehicle unit is also on the table, offering more operational flexibility.

Funding the Big EV Push

Tata Motors is investing ₹16,000 crore into this EV transformation. This will be funded by:

• Government’s PLI scheme
• Cash flow from operations
• Support from the passenger vehicle company

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About Tata Motors Limited

Tata Motors Limited, based in Mumbai, is an Indian multinational automotive manufacturer and a part of the Tata Group. It makes a wide range of vehicles, including cars, trucks, vans, and buses. Its key subsidiaries include Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

Tata Motors Share Price Movement

Tata Motors share price is currently trading at ₹669.55 as of June 23, 10:18 am IST, showing a decline of ₹6.65 or 0.98% for the day. The stock opened at ₹670.00 and has touched a high of ₹676.00 and a low of ₹666.10 so far. 

The company has a market capitalisation of ₹2.47 lakh crore, a price-to-earnings (P/E) ratio of 10.31, and offers a dividend yield of 0.90%. The 52-week high and low for the stock are ₹1,179.00 and ₹535.75, respectively. The quarterly dividend amount declared by the company is ₹1.51 per share.

Conclusion

Tata Motors is fully committed to winning back its leadership in India’s EV market. With a focus on longer range, competitive pricing, and wide expansion, it plans to address customer concerns and regain a 50% share. As new EV models hit the roads and sales channels expand, Tata’s aggressive strategy signals a bold new phase in its electric journey.

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