Tata Motors Expects EV Supply to Catch Up With Demand in 2–3 Months: Shailesh Chandra

Tata Motors expects its electric vehicle supply to catch up with demand in the next two to three months as component manufacturers expand capacity, Managing Director and CEO Shailesh Chandra said on Tuesday. The company's EV bookings have tripled since February, driven by concerns over fuel prices and availability amid the Middle East crisis, alongside new vehicle launches.

Speaking at the Autocar Professional EV Conclave 2026 in New Delhi, Chandra said the sudden increase in demand had caught automakers and component suppliers off guard, as their production plans had been prepared well before the geopolitical crisis.

"It is a matter of, I would say, 2–3 months that we will be able to ramp up the supply side to the extent of what the demand is," Chandra said during a panel discussion on scaling India's EV market.

He explained that supply plans prepared 18 to 24 months earlier had been based on expected growth from new launches, government policies and the overall development of the EV market. However, concerns about rising crude oil prices and possible fuel shortages created an additional demand trigger that the industry had not anticipated.

"Post February, we saw 3X jump in bookings at least for us," Chandra said, adding that new product launches had also contributed to the increase.

While Tata Motors has the flexibility to shift some manufacturing capacity between internal combustion engine (ICE) and electric vehicles, increasing component supplies takes longer. Suppliers of battery cells, power electronics and other critical components need additional equipment and production capacity to respond to higher demand.

Chandra also pointed to pressure on semiconductor supplies from the growing artificial intelligence industry. He declined to identify specific components facing shortages, citing competitive sensitivity.

The supply constraints come as Tata Motors continues to increase its EV volumes. According to sales analysis, the company dispatched 47,150 electric passenger vehicles during July–September 2026, accounting for about 24% of its total passenger vehicle volumes during the quarter. Its EV dispatches reached 108,548 units in the first nine months of calendar year 2026.

EV Demand, Charging Infrastructure and Affordability

Chandra believes underlying demand for electric passenger vehicles has already crossed 10% of the overall market, even though reported penetration remains below that level.

He based this assessment on differences in dealer inventory, saying EV stocks were below 10 days, compared with approximately 35–40 days for ICE vehicles.

"I think demand-wise, already it has crossed 10%," he said.

The assessment comes against a backdrop of rising EV retail sales. According to the Federation of Automobile Dealers Associations (FADA), electric passenger vehicles accounted for 8.45% of total passenger vehicle retail sales in September 2026, compared with 5.74% a year earlier and 7.63% in August.

Chandra said the next challenge was taking industry penetration towards 15–20%, which would require a substantial expansion of charging infrastructure and more electric cars at lower price points.

"The biggest residual barrier that is still left is charging infrastructure," he said.

According to the Ministry of Heavy Industries, India had 52,718 public EV charging stations as of July 2026, of which 16,561 were equipped with fast chargers for cars. The government has allocated Rs 2,000 crore under the PM E-DRIVE scheme for expanding public charging infrastructure.

Chandra cautioned that charging infrastructure could struggle to keep pace with the expanding EV fleet unless automakers, charging operators and the government work together.

He also highlighted home charging and consumers' right to install charging facilities as important enablers of wider adoption.

Reflecting on Tata Motors' early entry into the electric passenger vehicle market, Chandra said developing an EV requires more than introducing a new powertrain. Manufacturers must help build the supporting ecosystem, including suppliers and charging infrastructure.

He cited the evolution of the Nexon EV, which was introduced with a 30 kWh battery at Rs 13.99 lakh. According to Chandra, the model now offers a 45 kWh battery at a similar price, illustrating how EV manufacturers must continuously improve their products as battery technology advances.

Deeper Localisation Expected in 2–3 Years

On localisation, Chandra expressed confidence that India could substantially reduce its dependence on imported EV components over the next two to three years, although some critical materials and electronics would continue to be sourced overseas.

"I think two to three years down the line we will be heavily localised," he said.

According to Chandra, much of the battery-pack ecosystem, including cooling plates and bus bars, is already localised. However, battery cells remain a major area of import dependence.

He expects domestic cell manufacturing to begin within a year, with deeper localisation of cathode and anode materials taking another two to three years.

Power electronics have also seen progress in localisation, although semiconductor chips, resistors and other components used in printed circuit boards continue to be imported.

Chandra acknowledged that China retains a significant competitive advantage because of its manufacturing scale and deep vertical integration. However, he believes India's relative advantages in labour and power costs could help domestic manufacturers compete as local supply chains mature.

He said India would also need to secure access to critical minerals through international partnerships and investments in raw material sources, rather than rely entirely on imports from a limited number of countries.

Global Expansion Offers Opportunity

Chandra also sees an opportunity for Indian automakers to compete in international EV markets by offering affordable, feature-rich products.

He said electric cars in several developed markets cost upwards of $50,000, or an equivalent amount in local currency, creating an opening for Indian manufacturers that can produce vehicles priced around $15,000–20,000.

According to Chandra, Indian electric cars already offer competitive technology, features and durability, having been developed for demanding local driving and climatic conditions. However, entering overseas markets would require adjustments to meet local regulations and customer expectations.

Building brand recognition and distribution networks would be a bigger challenge for domestic manufacturers than developing suitable products, he added.

Chandra said Tata Motors has credible plans to expand into international markets but does not intend to rush the process while domestic demand remains strong.

"We don't have to do that in a hurry, right, because we have enough demand to first cater to here," he said.

He stressed that the company would need a proper market-entry strategy, including distribution and brand development, before expanding its international EV presence.