Tata Motors Passenger Vehicles (TMPV) plans to invest Rs. 375-400 billion (US$ 3.95 billion-4.2 billion) over the next five years to expand production capacity by nearly 45% and introduce several new models as part of its strategy to increase annual sales to more than 1.2 million units.

India's second-largest passenger vehicle manufacturer is targeting a 20% share of the domestic market by FY31, according to an investor presentation released on June 23rd. The company plans to add six new nameplates, expanding its portfolio to 15 models, and increase annual production capacity to 1.3 million units within the next two to three years.

Managing Director and CEO Shailesh Chandra stated that the domestic passenger vehicle market is expected to grow from 4.7 million units in FY26 to 6.4 million units by FY31, driven by rising incomes, shorter replacement cycles and increasing demand for premium vehicles. According to the company, the median industry selling price is projected to increase to approximately Rs. 1.5 million by FY31, from Rs. 1.1-1.2 million in FY26.

TMPV is aiming to increase annual sales to more than 1.2 million vehicles by FY31. Most of this incremental growth is expected to come from electric vehicles (EVs) and CNG models. The company is targeting EV penetration of more than 30% within its portfolio by FY31 by expanding its EV line-up to 10 nameplates from six at present.

The company estimates that the domestic EV market will exceed one million units annually by FY31, representing industry penetration of 15-20%. It expects nearly half of the industry's incremental growth over the next five years to be generated by EVs.

The company is planning new launches, including the Sierra.ev and Avinya-based products, while continuing to develop battery technology, charging speeds and driving range. Its roadmap includes battery packs exceeding 75 kWh, charging speeds up to three times faster, energy density improvements of 20-23%, and integrated powertrain technologies. The company also expects to address key adoption barriers, including price premiums, charging infrastructure, ownership confidence and real-world driving range.

Chandra stated that the future of the Indian automobile market will increasingly involve multiple powertrain options, with EVs and CNG vehicles expected to account for more than 45% of industry volumes by FY31, supported by regulations, expanding infrastructure and evolving consumer preferences.

Chief Financial Officer Dhiman Gupta stated that TMPV is targeting revenue of approximately Rs. 140 billion by FY31, compared with Rs. 58.5 billion in FY26, along with an EBITDA margin of 10% and an EBIT margin exceeding 5%. The company expects capital expenditure to remain at approximately 7% of revenue throughout the period and anticipates free cash flow generation following the investment phase, supported by operating leverage, structural cost reductions and improving EV profitability beyond the production-linked incentive (PLI) regime.

At the group level, Tata Motors stated that it intends to leverage synergies between its India-focused passenger vehicle business and its British luxury vehicle subsidiary, Jaguar Land Rover, in areas such as batteries, supplier ecosystems, software and digital technologies, strategic partnerships and overseas market expansion. According to the company, these synergies are expected to support its objective of becoming a more integrated global automotive company over the next five years.