EVs reach 25% of Tata Motors PV sales as capacity doubles

Tata Motors Passenger Vehicles says EVs now account for one in four sales, up from 14% a year ago. The company has raised EV capacity from 8,000 to more than 16,000 units, with non-metro markets contributing over half of EV sales.

— Source publishedFri, 25 Sept, 2026, 18:34 IST·First seen Fri, 25 Sept, 2026, 18:49 IST·Source Business Today · Latest

What happened

Tata Motors Passenger Vehicles said EVs now comprise a quarter of sales as demand exceeds supply. The automaker doubled EV capacity to over 16,000 units, while

Key facts

  • EVs account for 25% of Tata Motors PV sales, versus 14% a year earlier
  • EV capacity increased from 8,000 units to more than 16,000 units
  • EV bookings are 30% of total bookings
  • CNG vehicles account for 27% of sales
  • EV portfolio penetration is expected to reach 30%
  • EV bookings have more than trebled over six months
  • More than 50% of EV sales come from non-metro markets
  • Tiago, Punch and Nexon EVs span the Rs 8 lakh-Rs 15 lakh segment

Why this matters

Tata Motors’ accelerating EV penetration and non-metro traction strengthen the case for charging, battery-supply, retail-finance and regional ecosystem partnerships.

What to watch

  • Monthly Tata EV wholesale and retail volumes versus the 16,000-plus-unit capacity level.
  • EV mix sustainability above 25%, particularly after any model-launch or promotional periods.
  • Dealer inventory days, delivery wait times and reported discount levels.
  • Non-metro sales growth, charging-installation growth and financing approval rates.
  • Competitor EV launches and price changes from Mahindra, Hyundai, MG, Maruti Suzuki and Chinese-linked entrants.
  • Battery-cell costs, government EV incentives, import-duty policy and charging-tariff changes.
  • Used-EV resale values and warranty/battery replacement claims.
  • Prioritize inventory allocation, localized marketing and test-drive fleets in tier-2 and tier-3 cities where more than half of EV demand is emerging.
  • Expand partnerships with banks, NBFCs, insurers and charging operators to lower monthly ownership costs and address range, charging and resale objections.
  • Use the larger production base to shorten waiting periods while tightly managing dealer inventory and discounting.
  • Broaden EV service capability, battery-health certification and used-EV/residual-value programs to strengthen repeat purchase confidence.
  • Defend share with targeted model refreshes and feature upgrades rather than broad-based price cuts where possible.