Tata Motors Revamps EV Strategy to Reclaim Leadership in Indian Market
Backed by a ₹16,000 crore plan, Tata aims for 50% EV market share through longer ranges, price parity, and massive retail expansion.
Reviving Momentum: Tata Motors Eyes Major Turnaround in EV Sector
After witnessing a sharp decline in its electric vehicle (EV) market dominance, Tata Motors is charting an ambitious roadmap to reclaim its leadership position. The automaker, which once held an overwhelming 81% share of India’s EV market in FY23, saw that figure plummet to 35% by May 2025, as per data from the Federation of Automobile Dealers Association (FADA).
With rival brands accelerating their product pipelines and offering more diverse EV portfolios, Tata Motors is responding with a multifaceted revival plan. Central to this renewed approach are range upgrades, cost restructuring, wider availability, and the introduction of new electric models—including premium vehicles under the Avinya brand.
Reaching for 50% Market Share Once Again
At the company’s recent Investor Day in Mumbai, Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, expressed confidence in reversing the slide. He expressed confidence that, over the medium to long horizon, the company is targeting a comeback to reclaim 50% of the electric vehicle market share.
To achieve this, Tata Motors is overhauling its strategy with a focus on three key parameters: improving the driving range of its EVs by up to 60%, expanding its retail footprint fourfold, and narrowing the price gap between EVs and internal combustion engine (ICE) vehicles. The company’s roadmap includes launching both bespoke EVs and mid-segment models over the next 18 months, in addition to expanding the Avinya lineup by 2026.
Next-Gen EVs with Better Range and Lower Costs
Tata Motors commands a significant lead in the low-cost EV category, securing 78% market presence with strong contributions from its Tiago and Punch electric models. These vehicles, generally regarded as urban commuter cars, offer driving ranges close to 250 km. However, Tata is now aiming to extend that range to between 350 and 400 km—making these cars more practical for longer usage while also working to maintain affordability.
“We see massive demand in the entry EV space. To meet this, we must push the range higher while keeping the costs low enough to rival petrol-powered cars,” Chandra explained.
At the premium end, Tata has already taken a significant step with the recently launched Harrier EV, boasting a driving range exceeding 500 km. In the mid-range ₹12–20 lakh bracket, where Tata offers the Curvv and Nexon EV, the company holds a 36% market share. With upcoming feature-rich models and pricing adjustments, Tata expects to make stronger inroads in this competitive segment.
Achieving Price Parity with ICE Models
A major recent milestone for Tata Motors has been narrowing the cost difference between its electric models and traditional fuel-driven cars. Through aggressive localisation of components, declining battery prices, and streamlined manufacturing, Tata has brought EV pricing in line with ICE variants for certain trims.
Consider the Nexon Creative AT: its electric variant comes in at ₹14.79 lakh, nearly on par with the petrol version, which is listed at ₹14.32 lakh. Similarly, the electric Harrier is being offered at ₹22.95 lakh—lower than its fuel-based counterpart, which costs ₹23.06 lakh. These pricing strategies reflect Tata’s intent to make EVs a viable option for a larger customer base.
Retail Expansion: From Hundreds to Thousands of Locations
Currently, Tata Motors has a presence in 230 cities and operates around 1,100 EV sales points across India. The company intends to massively broaden its footprint, targeting expansion into 1,000 urban and semi-urban locations within the next four to five years.
To streamline operations and enhance customer experience, Tata is also evaluating a dedicated sales network for EVs, possibly even separating it from the existing passenger vehicle channel. While not confirmed, the company acknowledges it as a “logical step” that is under active review.
Merging EV and PV Arms for Future Synergies
Tata Motors previously carved out its electric and passenger vehicle divisions to pursue more targeted and strategic expansion. However, with the market maturing and future strategies demanding tighter integration, the company is now considering reintegrating its EV division back into the passenger vehicle (PV) business.
PB Balaji, Group CFO of Tata Motors, mentioned that such a merger is on the horizon and will enable the company to build greater operational flexibility and efficiency.
The broader EV revival push will be powered by a planned ₹16,000 crore investment, to be funded through a mix of internal accruals, proceeds from the Production Linked Incentive (PLI) scheme, and support from the PV business.
Final Thoughts
Tata Motors is leaving no stone unturned in its mission to reclaim dominance in India’s electric vehicle space. After facing mounting competition and a steep drop in market share, the automaker is responding with a future-ready strategy that hinges on longer-range models, competitive pricing, and nationwide availability.
From expanding infrastructure to launching premium and entry-level EVs with improved performance, Tata’s ₹16,000 crore investment underscores a serious commitment to transformation. By working toward price parity and better driving experience, while potentially redefining brand and sales channels, Tata Motors is positioning itself for a powerful return to the top of the EV leaderboard.
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The image added is for representation purposes only
