Tata Motors Unveils 2031 Strategy: Expand Lineup to 25 Models, Target 400,000 EVs Annual Sales

Tata Motors’ Passenger Vehicles Business Unit unveiled its strategic roadmap for FY2031 (ending March 31, 2031) on June 23, 2026. The company plans to expand its passenger vehicle portfolio from the current 15 models (9 ICE and 6 EVs) to 25 models by adding 6 new internal combustion engine (ICE) vehicles and 4 all-new electric vehicles (EVs), alongside executing over 30 iterations, mid-cycle updates, or variant expansions across its existing lineup. On the electrification front, Tata Motors currently offers six EVs in the Indian market. The four planned new EVs include the Sierra EV—set to debut on June 30, 2026—offering a dual-motor AWD variant and an entry-level version equipped with a 65 kWh LFP battery—and the first model under its premium sub-brand Avinya, expected to launch in early 2027. The identities of the remaining two EVs remain unconfirmed, though industry speculation suggests they could be the Safari EV (anticipated to launch around India’s traditional festive season in 2026, becoming Tata’s first three-row electric SUV) and an electric MPV (potentially its first-ever electric MPV). Tata aims for EVs to account for more than 30% of its passenger vehicle sales by FY2031, translating to annual EV volumes of 350,000–400,000 units. The company intends to maintain profitability even after the government’s Production-Linked Incentive (PLI) scheme expires in 2028, through battery localization, e-drive integration, and next-generation battery technologies offering 20–23% higher energy density and up to 3x faster charging speeds. For ICE vehicles, Tata plans to grow its portfolio from 9 to 15 models by introducing 6 new vehicles and implementing over 20 model refreshes. One of these new ICE SUVs will target the premium segment, competing directly with models like the Toyota Fortuner, Škoda Kodiaq, and Hyundai Santa Fe. To support this product expansion, Tata intends to increase its annual production capacity from approximately 900,000 units to 1.3 million units over the next two to three years, primarily through the expansion of its Sanand plant and structural upgrades to key workshops at its existing facilities in Pune, Sanand, Ranjangaon, and Pantnagar. In terms of sales targets, Tata aims to achieve annual passenger vehicle sales exceeding 1.2 million units by FY2031 (compared to around 640,000 units in FY2026). It targets growing domestic passenger vehicle revenue from ₹585 billion to ₹1.4 trillion and total revenue from ₹3.36 trillion to over ₹6 trillion. Its dealership network will expand from 1,669 outlets to approximately 3,200, supported by over 3,000 service centers. The company aspires to capture a 20% share of India’s passenger vehicle market (currently around 14–15%) and achieve over 25% share in the compressed natural gas (CNG) segment. EVs and CNG vehicles are expected to contribute significantly to the projected incremental sales volume of over 600,000 units. Financially, Tata targets an EBIT margin of 10% by FY2031. It has already initiated a structural cost-reduction program aimed at lowering the cost base of its ICE portfolio by 5–6% over the next two years and driving additional cost optimization in its EV business. The company also plans to invest ₹330–350 billion in capital expenditure for its passenger vehicle and EV businesses between FY2026 and FY2030.