Tata Motors Passenger Vehicles Ltd expects SUVs, compressed natural gas vehicles and electric vehicles to lead its growth in FY27, as it looks to build on record sales and stronger momentum in the second half of the previous financial year.
The company enters the new fiscal year with a pipeline of product launches and a portfolio spanning petrol, diesel, CNG and electric powertrains, Managing Director and CEO Shailesh Chandra said.
“While the industry will need to closely monitor ongoing geopolitical developments, the fundamental demand drivers of the Indian passenger vehicle market remain strong, with growth expected to be led by SUV, CNG and EV segments,” Chandra was quoted as saying in the company’s FY26 Annual Report.
“We enter FY27 with confidence, supported by stronger fundamentals, a robust pipeline of new launches, multi-powertrain offerings and renewed momentum from the second half of FY26,” he added.
Tata Motors PV will target growth ahead of the passenger-vehicle industry while maintaining its focus on safety, product quality, sustainability and customer experience, Chandra said.
The company, however, said it will remain cautious, as geopolitical tensions could affect commodity costs, logistics and supply chains. It plans to maintain flexibility in manufacturing and sourcing as it expands its product range and production capacity.
Multi-Powertrain Strategy
Tata Motors PV expects its wide powertrain portfolio to help it address changing customer demand.
CNG vehicles have emerged as an important part of its business, supported by the company’s twin-cylinder technology. Tata Motors PV sold about 1.7 lakh CNG vehicles in FY26. Its CNG range includes hatchbacks, sedans and SUVs, giving customers an alternative to petrol and diesel vehicles at a time when running costs remain an important purchase consideration.
Electric vehicles will remain another key growth area. The company is trying to increase EV adoption by narrowing the acquisition-cost gap with internal-combustion-engine vehicles, improving driving range and charging speeds, and offering greater battery assurance.
“Our decisive focus was on mainstreaming EVs by systematically and holistically addressing the barriers to their adoption,” Chandra said.
The company has also expanded charging access through partnerships with charging-point operators and its Tata.ev Mega Charging Hubs.
Products such as the Harrier.ev and the new Punch.ev helped the company widen its addressable market during FY26.
Tata Motors PV said its strategy will continue to be based on specific customer and segment needs rather than depending on a single powertrain.
New Launches to Support Growth
The company plans to use new models, updates and additional powertrain options to strengthen its position across passenger-vehicle segments.
“Our FY26 performance was driven by a consciously sharpened strategy to strengthen our product portfolio through precise segment actions, timely launches, and continuous powertrain and variant optimisation to stay ahead of customer demand,” Chandra said.
During FY26, Tata Motors PV launched the Sierra, the new Punch and the new Altroz. It also introduced petrol variants of the Harrier and Safari.
The Nexon and Punch remained among the three highest-selling passenger vehicles during the second half of the year. The Sierra also received a strong initial response, helping Tata Motors PV strengthen its presence in the SUV market.
SUVs accounted for more than 56% of Indian passenger-vehicle sales in FY26, making the segment central to the company’s growth plan.
Record FY26 Volumes
Tata Motors PV sold 6,41,586 vehicles in FY26, its highest-ever annual volume. Sales increased 15% from the previous year, compared with about 8% growth for the broader passenger-vehicle market.
The company became India’s second-largest passenger-vehicle manufacturer in the second half of FY26, based on Vahan registrations. Its market share during the period stood at 14.1%.
The company also sold more than 10,200 vehicles in overseas markets, supported by its re-entry into South Africa. It described its international strategy as calibrated, with a focus on selective markets and sustainable expansion.
EV Sales Cross 92,000 Units
Tata Motors PV retained its leadership in India’s electric passenger-vehicle market in FY26.
Its EV sales increased by more than 43% to 92,179 units. The company ended the year with a 40.2% share of the electric passenger-vehicle market. It also crossed cumulative EV sales of 2.5 lakh units.
The wider Indian electric passenger-vehicle market expanded rapidly during the year as more manufacturers launched products and customer acceptance improved.
Tata Motors PV said it would continue investing in products and the charging ecosystem as competition increases.