Tata Motors Aims To Return To 50 Per Cent Market Share In EV Market Over 18 To 24 Months: MD

Shailesh Chandra, MD, Tata Motors PV and Tata Passenger Electric Mobility, said the firm is preparing to make inroads into the premium EV category with 2 launches, the Harrier.ev and Sierra.ev.

Despite recent headwinds, the automaker is counting on a refreshed product strategy to strengthen its position in an increasingly competitive landscape.

Source : Tata Motors

Tata Motors is aiming to bounce back to a 50 per cent market share in the electric passenger vehicle (EV) space over the next 18 to 24 months, according to a senior company executive.

Despite recent headwinds, the automaker is counting on a refreshed product strategy to strengthen its position in an increasingly competitive landscape.

The domestic EV market, once dominated by a few models, is now segmenting rapidly by price, leading Tata Motors to diversify its offerings. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, told PTI that the company is preparing to make inroads into the premium EV category with two upcoming launches – the Harrier.ev and Sierra.ev – both priced above Rs 20 lakh.

Targeted Strategy for All Price Segments

Chandra pointed out that the electric passenger vehicle market now consists of four broad price segments: Rs 8–12 lakh, Rs 12–20 lakh, above Rs 20 lakh, and the fleet category. Tata Motors currently holds a commanding 75 per cent share in the Rs 8–12 lakh range with models like Tiago.ev and Punch.ev. “The idea would be to expand this part of the EV market. We are going to do that by strengthening the value proposition of the existing product and that work is on,” he said.

However, in the Rs 12–20 lakh range, competition has intensified, bringing Tata’s share down to 33–35 per cent. “This is where we are trying to bring more compelling options with two products that we have here, Nexon.ev and Curvv.ev, to fiercely compete in this segment,” Chandra explained.

The automaker also sees significant potential in the premium segment above rs 20 lakh. “There is another segment beyond Rs 20 lakh, which is emerging fast, and we are seeing the appetite of people also here to buy electric cars. This is the segment we are not present in right now. This is where we'll come with Harrier.ev and then Sierra.ev. So, that will open a new segment for us, and that should strengthen our volume growth further,” he added.

Fleet Market Challenges and the TCO Focus

A major factor behind the recent drop in Tata’s EV market share—from 55 per cent last fiscal to about 40–41 per cent currently—has been the decline in fleet sales. “A big part of the loss in volume has come because of the loss of volume in the fleet segment. In the personal segment, we have been kind of sustaining our volumes, but we are losing market share because the competition is coming in,” Chandra noted.

The fleet segment, he said, has been hit by the end of the FAME subsidy, making electric vehicles less viable for commercial buyers. In response, Tata Motors is now working to make EVs in the fleet category as cost-effective as their CNG counterparts. “So far, the total cost of ownership of an electric car has beaten the diesel option, but the bigger market of the fleet is CNG,” Chandra said. “Therefore, the effort is on to ensure how we can bring the (EV) TCO down to the TCO of a CNG and therefore the value proposition in the fleet segment has to be taken forward in that direction and we are actively working on it.”

Outlook: Product Expansion to Drive Recovery

While short-term pressures are expected to persist, Tata Motors is optimistic that its comprehensive approach—spanning product enhancement, segment-specific launches, and cost competitiveness—will help it regain market momentum. “We have the aspiration of sustaining our market share beyond 50 per cent in the mid to long term...We would aspire to be at a 50 per cent market share by having a very wide product portfolio and products which are aligned to the expectation of the customers,” Chandra said.

Despite a 10 per cent decline in EV sales in FY25 to around 65,000 units, the company remains confident in its roadmap. “There will be a continuous expansion and renewal of the portfolio in line with how the market is shaping up,” Chandra concluded. “That would mean fresh products, very compelling products going forward.”