‘New PV Launches, Multi-Powertrain Offerings to Drive FY27 Growth’: N Chandrasekaran

Tata Motors Passenger Vehicles Ltd expects to deliver industry-leading growth in FY27, supported by a strong pipeline of new models and a broad mix of powertrains, Chairman N Chandrasekaran said.

The company will build on the sales momentum seen in the second half of FY26, while keeping a close watch on geopolitical uncertainty, commodity prices and supply-chain risks.

“We enter FY27 with confidence, supported by a robust pipeline of new launches and multi-powertrain offerings,” Chandrasekaran said in the company’s 81st Annual Report.

“Our focus will remain on delivering industry-leading growth, deepening our commitment to safety, sustainability, quality and customer delight, while becoming resilient and staying agile amid macroeconomic and geopolitical uncertainties,” he added.

The company expects SUVs, CNG vehicles and electric vehicles to remain key growth drivers. It will also continue improving its conventional petrol and diesel powertrains, as customer demand remains spread across technologies.

Chandrasekaran said sustained demand for internal-combustion-engine vehicles and rising acceptance of EVs support the company’s balanced powertrain strategy.

“India’s mobility transition is being shaped by aspiration, infrastructure and evolving consumer expectations,” he said. “The sustained demand supports the ICE portfolio, and the continued momentum in EVs reflects growing customer confidence in new technologies, underscoring the strength of a balanced, multi-powertrain strategy,” he added.

Product and Technology Focus

Tata Motors PV plans to sharpen its focus on aspirational products, customer trust and improving the ownership experience during FY27.

The company is also expected to deepen the use of digital technologies, artificial intelligence and advanced analytics across product development, manufacturing and customer engagement. It plans to use connected technologies to offer more personalised and proactive services to customers.

Tata Motors PV and Jaguar Land Rover will continue to collaborate on manufacturing, technology and employee capabilities. The aim is to improve scale, share knowledge and maintain capital discipline.

The partnership has begun operations at the new Panapakkam manufacturing facility in Tamil Nadu. The shared plant is expected to provide production and scale benefits to both businesses.

The company will continue investing in products, vehicle platforms and supporting infrastructure for scalable zero-emission mobility. It has set a target of reaching net-zero emissions in its passenger-vehicle operations by 2040.

Record sales in FY26

The FY27 outlook follows a record year for Tata Motors PV in India. The company sold about 6.42 lakh cars and SUVs in FY26, an increase of 15.3% over the previous year. The growth rate was nearly twice that of the broader passenger-vehicle industry.

Tata Motors PV became India’s second-largest passenger-vehicle manufacturer during the second half of the financial year. Its market share during the period stood at 14.1%.

The Nexon and Punch were the first- and third-highest-selling passenger vehicles in the industry during the second half of FY26, according to the company. The launch of the Sierra also received a strong response.

CNG vehicle sales grew faster than the wider CNG market, supported by the company’s multi-powertrain portfolio. The company also returned to South Africa during the year as part of its plan to gradually expand its international business.

EV sales rise 43%

Tata Motors PV retained its leadership in India’s electric passenger-vehicle market, though competition continued to increase. The company sold more than 92,000 electric vehicles in FY26, a rise of 43.4% over the previous year. Its EV market share stood at 40.2%.

It also crossed cumulative electric vehicle sales of 250,000 units. Tata said it accounted for about two-thirds of all electric passenger vehicles sold in India since the start of the market.

The company has been the largest electric passenger-vehicle maker in India for the past seven years.

Its EV portfolio includes models across different sizes and price points. During FY26, the company focused on narrowing the purchase-price gap with combustion-engine vehicles, increasing range, improving charging speed and offering greater battery assurance.

Revenue Rises 21%

Tata Motors PV’s India business reported revenue of ₹58,465 crore in FY26, an increase of 20.7% from the previous year. Its earnings before interest, tax, depreciation and amortisation margin remained at 6.9%, while the operating margin stood at 1.4%. Profit before tax and exceptional items rose 32.6% to ₹1,436 crore.

The business ended the year with net cash of ₹6,710 crore, giving it room to increase investment in new products, technology and manufacturing capacity.

Over the past few years, the company’s volumes have increased nearly fivefold and revenue has grown close to sixfold, Chandrasekaran said. It has also doubled its sales and service network during this period.

JLR Headwinds Weigh on Consolidated Performance

At the consolidated level, Tata Motors Passenger Vehicles reported revenue of ₹335,582 crore and profit before tax and exceptional items of ₹2,519 crore in FY26.

The performance was affected by headwinds at Jaguar Land Rover, including higher US tariffs and a cyberattack that forced the luxury car maker to stop production for five weeks.

JLR’s revenue declined 20.9% to £22.91 billion during FY26. However, the group returned to stronger performance in the fourth quarter after JLR resumed normal production and the India passenger-vehicle business maintained its demand momentum.

Consolidated revenue stood at ₹105,447 crore in the fourth quarter, while profit before tax and exceptional items was ₹7,167 crore.

JLR will focus on bringing its breakeven volume back to 300,000 units over the next two years. It will also prepare for products including the Range Rover Electric and Jaguar Type 01.

Despite the risks posed by tariffs, currency movements, commodity inflation and geopolitical tensions, Chandrasekaran said Tata Motors PV remained confident about its growth opportunities.

“We are committed to moving forward with confidence in our strategy, optimism about our opportunities, and a strong focus on creating long-term value,” he said.