Tata Motors EV Business Turns Profitable, Targets Rs 18,000 Cr Investment Through FY30

Tata Motors Ltd said it will invest Rs. 16,000–18,000 crore in its electric vehicle (EV) business between FY25 and FY30 as it aims to consolidate its leadership and scale up product development and infrastructure over the next five years.

Group CFO P.B. Balaji shared the update during the company’s Investor Day 2025 presentation, which outlined the capital allocation and growth roadmap for its electric mobility arm, Tata Passenger Electric Mobility Ltd (TPEML).

As per the presentation, the EV business achieved EBITDA profitability in FY25, a year ahead of the company’s earlier guidance. The division posted a 1.2% EBITDA margin, marking an improvement of 830 basis points over the previous fiscal. However, free cash flow was negative Rs. 1,100 crore, in line with the company’s investment-led scale-up strategy.

Tata Motors retained a 55%+ market share in the domestic electric passenger vehicle segment, despite broader industry softness following the expiry of fleet subsidies under FAME II. The company said its EV division is fully funded for the next three years.

Cumulative EV sales have crossed 200,000 units, led by models such as Nexon.ev, Tiago.ev, Punch.ev and Curvv.ev. Upcoming launches like Harrier.ev and Sierra.ev are expected to expand its presence in premium segments.

Tata Motors reaffirmed its longer-term target of delivering positive free cash flows and a 10% EBITDA margin for its consolidated passenger and electric vehicle business by FY30.