Tata Motors to invest ₹35,000 crore over five years to boost EV and new vehicle portfolio
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Tata Motors has unveiled an ambitious investment plan of ₹35,000 crore (approximately $4.1 billion) over the next five years as it aims to solidify its leadership in India’s electric vehicle (EV) segment amid mounting competition and a nationwide push toward cleaner mobility solutions.
The automotive giant, known for popular SUVs like the Nexon and Punch, announced during its recent investor day presentation that it will expand its vehicle lineup from the current eight models to 15.
This will include a mix of new electric vehicles, compressed natural gas (CNG) models, and enhanced technology offerings.
India, currently the world’s third-largest automobile market, is setting the stage for a green transition with stricter emission norms set to kick in from 2027.
The government also aims for EVs to comprise 30% of total car sales by 2030.
Although Tata Motors has not disclosed how much of the ₹35,000 crore will be allocated for the financial year ending March 2026, it previously stated that its domestic operations—including commercial vehicles—would see a capital expenditure of ₹8,000 crore.
In the internal combustion engine (ICE) segment, the company is facing stiff competition. Mahindra & Mahindra has recently overtaken Tata in ICE vehicle sales, while Chinese automaker MG Motor has been gaining ground in the EV space with the strong performance of its "Windsor" model, which has outsold Tata’s electric offerings since late 2024.
Despite these challenges, Tata Motors remains confident about its market position. It is holding firm on its goal to capture a 16% share of the passenger vehicle market by March 2027, with ambitions to increase that figure to 18%-20% by March 2030.
