Tata Motors PV Plans To Enter New Export Market by Early FY28

The automaker has identified key markets for expansion over the next two-three years; South Africa is driving the current surge in overseas sales.

13 Aug 2026 | 1 Views | By Darshan Nakhwa and Mugdha Mishra

Tata Motors Passenger Vehicles Ltd (TMPV) plans to enter another major overseas market by the end of FY27 or early FY28 as it maps a wider international expansion across ICE and electric vehicles over the next two to three years.

“There will be either at the end of this financial year or maybe early next financial year we will open another big market,” Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles, said during a media call held to discuss the company's Q1 performance.

“We have in the next two to three years some key focus markets identified... which would be ICE-focused markets as well as EV-focused markets,” he added. 

The comments provide a timeline to Tata Motors' broader international expansion plan. Tata Group Chairman N. Chandrasekaran had said at the company's annual general meeting in July that Tata Motors would deepen its presence in South Africa while exploring markets such as Australia and Malaysia. The company also plans to look more closely at the UK and Europe.

The strategy suggests Tata Motors is looking at a mix of markets where its existing ICE portfolio can find buyers and developed markets where its expanding EV range could provide an entry point. The earlier plan had also indicated a focus on right-hand-drive markets such as South Africa, Australia and Malaysia, where its existing products are better suited.

UK Entry Plan Takes Shape

The UK could form an important part of Tata's EV-led international expansion.

Tata Motors has already begun work towards a potential UK entry, including vehicle certification and preparations for a sales and service network, ahead of opportunities to export electric vehicles duty-free.

The UK and European markets could become more relevant as Tata expands its electric vehicle portfolio and develops products with greater potential beyond India. The company, however, has not disclosed sales targets, investments or firm entry timelines for these markets.

Chandra said Tata would provide more details when it gets closer to entering the identified markets.

South Africa Drives Current Export Growth

For now, South Africa is driving Tata Motors PV's overseas growth.

Tata Motors returned to South Africa's passenger vehicle market in 2025 and has since been expanding its product portfolio as well as its dealership footprint. The company currently sells models including the Punch, Curvv, Harrier and Tiago in the country through its partnership with Motus Holdings.

Chandra said the expansion in South Africa is the primary reason behind the sharp rise in Tata's exports.

“This quarter will be equally strong because, as you know, we opened South Africa last year... Since then we have been expanding our product range as well as the number of outlets and dealerships,” he said.

South Africa also featured prominently in the international strategy outlined by Chandrasekaran in July, when he said the company would deepen its presence there alongside exploring Australia and Malaysia.

Exports More Than Double in Q1

Tata Motors PV's international business remains small compared with its domestic operations, but is growing rapidly.

The automaker sold 2,408 passenger vehicles in international markets in Q1 FY27, up 148% from 970 units a year earlier. Domestic wholesales rose 45% to 1,80,166 units from 1,23,839 units.

Overall passenger vehicle sales, including domestic and international markets, increased 46% to 1,82,574 units during the quarter.

EV sales across domestic and international markets more than doubled to 34,467 units, providing Tata with a wider electric portfolio as it evaluates EV-focused export markets.

Despite the sharp growth, exports accounted for only around 1.3% of Tata Motors PV's Q1 volumes, highlighting the low base from which the company is building its overseas passenger vehicle business.

Global Push Alongside India Expansion

The international expansion is taking shape alongside an aggressive domestic growth plan. Tata Motors is targeting a 20% share of India's passenger vehicle market by FY31, from around 14% currently, supported by six new nameplates and more than 20 product interventions.

The company has also outlined investment of around ₹40,000 crore in its domestic automotive operations over five years, while Tata Group is targeting automotive revenue of about $100 billion by FY31 across Tata Motors' passenger and commercial vehicle businesses and JLR.

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