Amid industry slowdown, Tata Motors deepens clean mobility push and scales infrastructure to future-proof its passenger vehicle business
24 May 2025 | 1186 Views | By Ketan Thakkar and Prerna lidhoo
Tata Motors Chairman N Chandrasekaran said India’s passenger vehicle (PV) industry entered a “phase of consolidation” in FY25, after several years of strong growth, with demand stabilising amid broader macroeconomic pressures.
In his address to shareholders in the company’s 80th Integrated Annual Report, Chandrasekaran noted that despite the changing ...
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Tata Motors Chairman N Chandrasekaran said India’s passenger vehicle (PV) industry entered a “phase of consolidation” in FY25, after several years of strong growth, with demand stabilising amid broader macroeconomic pressures.
In his address to shareholders in the company’s 80th Integrated Annual Report, Chandrasekaran noted that despite the changing market landscape, Tata Motors continued to gain traction in the domestic passenger and electric vehicle segments, supported by robust demand for SUVs, CNG, and EV models.
While the company posted its first annual decline in sales in four years—pressured by challenges in the entry-level segment and a consumer shift towards SUVs—it continued to deepen its focus on cleaner powertrains. “Driven by a robust multi-powertrain strategy and a deep-rooted commitment to sustainable mobility, we grew the share of CNG and electric vehicles to 36% of our overall portfolio,” Chandrasekaran said.
With an eye on long-term growth and a target of achieving 20% market share by the end of the decade, Tata Motors is building capacity for the future. In FY25, the company began construction of a new manufacturing facility in Tamil Nadu, expected to become a cornerstone of its electric vehicle expansion. “We commenced work on our new manufacturing facility in Tamil Nadu, laying the foundation for future growth,” he added.
To support the rising adoption of EVs, Tata Motors also scaled up its nationwide retail and charging infrastructure and introduced multiple digital and after-sales enhancements to elevate the customer experience.
“As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem,” Chandrasekaran said.
The company’s progress comes as it prepares for a significant corporate restructuring—demerging its passenger and commercial vehicle operations into two independently listed entities, each with a focused strategic agenda.