Tata Motors Passenger Vehicles plans to more than double its annual sales to over 12 lakh vehicles by FY31, up from about 6.4 lakh units in FY26, supported by new models, wider powertrain choices, and growth in electric and compressed natural gas vehicles.
The target forms part of the automaker’s five-year growth plan outlined in its Investor Day presentation. During the same period, the company also expects the Indian passenger-vehicle market to expand from about 47 lakh units in FY26 to around 64 lakh units by FY31, reflecting an annual growth rate of 6-7%.
Tata Motors PV expects electric vehicles to account for around 8 lakh of the 17 lakh incremental industry volumes during this period. CNG vehicles are expected to contribute another 6 lakh units, while petrol, diesel and other powertrains will add the remaining 3 lakh units.
This means nearly half of the industry’s incremental growth could come from EVs, while CNG vehicles could contribute about 35%.
The company expects the median selling price in the industry to increase to around ₹15 lakh by FY31 from ₹11-12 lakh in FY26, driven by rising incomes, higher vehicle prices and growing demand for larger and more feature-rich models.
Tata Motors PV plans to use new nameplates, model updates and additional powertrain choices to increase its presence across the market. It also intends to fill gaps in its portfolio and increase its addressable share of the passenger-vehicle industry.
The automaker offers products across petrol, diesel, CNG and electric powertrains. It expects this approach to help it respond to different customer needs as India’s transition towards cleaner vehicles takes place at varying speeds.
SUVs, CNG vehicles and EVs are expected to remain the main growth areas. The company will also continue investing in petrol and diesel products, which are likely to remain a significant part of the market.
FY26 Volumes at a Record High
The FY31 target follows Tata Motors PV’s strongest annual sales performance. The company sold 6,41,586 vehicles in FY26, an increase of about 15% from the previous year. Its growth rate was almost twice the 8% expansion recorded by the broader passenger-vehicle industry. During the year, its domestic sales increased 14% to 6,31,385 units, while exports rose nearly fourfold to 10,201 vehicles.
Tata Motors PV became India’s second-largest passenger-vehicle manufacturer during the second half of FY26. Its full-year market share increased to 13.6% from 13.2% in FY25.
The company’s growth was supported by SUVs, hatchbacks and CNG vehicles. Its CNG sales increased to more than 1.7 lakh units in FY26 from 1.39 lakh units in the previous year. The company’s annual CNG volumes have increased more than fourfold from 41,000 units in FY23.
Tata Motors PV said the growth was supported by its twin-cylinder CNG technology and a portfolio spanning hatchbacks, sedans and SUVs.
The Nexon and Punch were among the highest-selling SUVs during the second half of FY26. The company also introduced the Sierra, refreshed the Punch and Altroz, and launched petrol versions of the Harrier and Safari.
The product actions helped Tata Motors PV increase sales after a weak first half for the broader industry. Passenger-vehicle demand recovered sharply in the second half, supported by lower goods and services tax rates and improved customer affordability.
30% EV Penetration Target
Tata Motors PV plans to increase electric vehicles to 30% of its annual sales by FY31 from about 14% in FY26.
It will expand its electric portfolio from six models to 10 by FY31. The plan includes four new products and more than 10 updates and refreshes.
The portfolio will cover prices ranging from around ₹7 lakh to more than ₹30 lakh and include hatchbacks, sedans and SUVs.
Tata Motors PV sold more than 92,000 electric vehicles in FY26, its highest annual EV volume. The company retained its leadership position with a market share of over 40%. However, its market share declined from 55.4% in FY25 as more manufacturers entered the electric passenger-vehicle segment.
The company expects India’s electric passenger-vehicle market to expand from about 2.2 lakh units in FY26 to 10-11 lakh units by FY31. EV penetration in the wider industry is expected to reach 15-20% by then.
The growth is expected to be supported by tighter corporate average fuel efficiency norms, new models from established manufacturers, entry by more companies and improving customer acceptance.
Tata Motors PV plans to strengthen its electric-vehicle value proposition through different battery formats, more integrated power electronics and next-generation thermal-management technology.
It will also focus on reducing the purchase-price gap with conventional vehicles, improving driving range and charging speed and increasing confidence in battery life.
The Harrier.ev expanded the company’s presence into the higher-priced electric SUV market during FY26, while the refreshed Punch.ev strengthened its mass-market portfolio.
The company has also been expanding charging access through partnerships with charging-point operators and Tata.ev charging hubs.
Tata Motors PV’s plan to cross 12 lakh annual sales will depend on its ability to maintain growth across conventional vehicles while capturing a larger share of the expanding EV and CNG markets. The company will also have to protect its position as competition increases and manufacturers bring more products across price segments and powertrains.