Tata Motors PV Eyes Over 1-Million-Unit Capacity; Plans 3 Lakh Capacity Addition in 2-3 Years

Tata Motors plans to increase its passenger vehicle production capacity by another 300,000 units annually over the next few years through a brownfield expansion, according to the Managing Director of Tata Motors Passenger Vehicles and Passenger Electric Mobility Shailesh Chandra. 

With this, the automaker’s total passenger vehicle capacity will cross 1 million units from the current capacity of 850,000 units. The expansion is likely to take place in Sanand, Gujarat, where Tata Motors already operates two passenger vehicle plants. The automaker also has a passenger vehicle plant in Pune.

The planned expansion comes as Tata Motors prepares for an aggressive product rollout across internal combustion engine and electric vehicle segments. The company launched the facelifted Tiago EV on Thursday and is set to introduce two new nameplates and four facelifts this year.

In the last financial year, Tata Motors launched the Sierra, introduced petrol-powered versions of the Harrier and Safari SUVs, rolled out the updated Punch and expanded its EV portfolio with the Harrier.ev and upgraded Punch.ev. The full impact of these product interventions on demand will be reflected this year.

One of Tata Motors’ immediate priorities is ramping up production of the Sierra and other EV models after receiving strong customer response following their launches. However, production has been constrained by supplier-side bottlenecks. Rising fuel prices linked to the escalating West Asia crisis are also accelerating EV demand in India, Chandra said.

Bookings and customer enquiries for electric vehicles have surged sharply over the last two months as buyers increasingly seek protection from rising fuel costs and operating expenses. The demand spike is now pushing Tata Motors to rapidly increase EV production capacity.

The company currently produces around 10,000 EVs a month and plans to raise output by at least 50% to around 15,000 units a month over the next three to four months. “If I was able to supply, my market share would have stepped up a bit. But my market share is defined by the supply,” Chandra said.

Separately, Tata Motors has started production at its new Ranipet facility in Tamil Nadu. The plant’s output will be scaled up in phases and is expected to eventually reach an annual capacity of 250,000 vehicles over the next four to six years.

The company will be investing 4,000-5,000 crore annually over the next few years. Chandra noted that investment will be in the range of 7-9% of the topline in the next few years.

In the financial year ended March 2026, Tata Motors dispatched 651,000 passenger vehicles in the domestic market and exported 10,350 units. Total production stood at 661,000 units.

The automaker faces strong competition from Maruti Suzuki, Hyundai and Mahindra & Mahindra in the ICE passenger vehicle market, while JSW MG Motor India and Mahindra are intensifying competition in the EV segment.