Tata Motors Passenger Vehicles has set a target of increasing revenue from the domestic passenger vehicle business to ₹1.4 lakh crore by FY31 from ₹58,500 crore in the previous fiscal, as it plans to more than double volumes and improve profitability through new products, multiple powertrains and cost reductions.
Profit before tax and exceptional items is expected to increase more than fivefold from the FY26 level by FY31.
As an intermediate target, the company expects revenue to cross ₹1.15 lakh crore by FY29. It has set an EBITDA margin target of 8% and an EBIT margin of 4% for that year.
The FY29 margin target will have to be achieved after the expiry of benefits under the production-linked incentive (PLI) scheme. Tata Motors PV's EBITDA margin stood at 6.9% in FY26, but was around 5% excluding PLI benefits.
It plans to invest ₹37,500-40,000 crore through FY29. Capital expenditure is expected to remain at around 7% of revenue, with spending increasing during the initial years to create capacity and support new products.
Consolidated Revenue Target of ₹6 Lakh Crore
At the consolidated level, Tata Motors PV Group, which includes the Indian passenger vehicle business and Jaguar Land Rover, has set a target of crossing ₹5 lakh crore in revenue by FY29 and ₹6 lakh crore by FY31.
The group is targeting an EBIT margin of 7% and profit before tax and exceptional items exceeding ₹30,000 crore by FY29. It also expects to become net debt-free by then.
By FY31, the consolidated business is targeting an EBIT margin of 10% and profit before tax and exceptional items of over ₹50,000 crore. It also expects to generate significant free cash flow.
The group said its wider aspiration is to become one of the top five value-creating growth businesses with strong competitive advantages.
The targets compare with consolidated revenue of ₹3.36 lakh crore and profit before tax and exceptional items of ₹2,519 crore in FY26. The previous year was affected by lower volumes and operational disruption at JLR.
New Launches to Support FY27 Growth
For FY27, Tata Motors PV expects to deliver growth ahead of the broader Indian passenger vehicle industry, supported by new launches, model updates and a wider range of powertrains.
The company expects SUVs, compressed natural gas vehicles and electric vehicles to remain the main growth drivers.
Tata Motors PV sold a record 6,41,586 vehicles in FY26, an increase of 15% from the previous year. Its growth was nearly twice the 8% expansion recorded by the wider passenger vehicle industry.
It became India's second-largest passenger-vehicle manufacturer in the second half of the year.
The company sold more than 1.7 lakh CNG vehicles and over 92,000 EVs during FY26. It retained the top position in the electric passenger vehicle market with a share of more than 40%.
Tata Motors PV expects its annual volumes to increase from around 6.4 lakh vehicles in FY26 to more than 1.2 million units by FY31. This would require the addition of over 6 lakh units during the next five years.
The growth will come from the expansion of the overall passenger vehicle market, entry into new segments, and increased sales of CNG and electric vehicles.
The company estimates that the Indian passenger vehicle market will increase from around 47 lakh units in FY26 to 64 lakh units by FY31. It expects EVs to account for nearly half of the incremental industry volumes, while CNG vehicles could contribute another 35%.
Tata Motors PV plans to expand its addressable market to more than 80% of the industry by FY31. It is targeting a share of over 25% in each segment in which it participates.
The company will use new nameplates, additional powertrain options and regular model updates to enter gaps in its portfolio and strengthen existing products.
Five Priorities for the Group
The group has identified five priorities for the next five years: double-digit growth, capital efficiency, technology development, resilience and strategic partnerships.
Growth will be driven by new products and stronger market execution. Tata Motors PV also plans to improve customer experience and product quality while ensuring that its dealer network remains profitable.
Capital efficiency will focus on reducing material and fixed costs. The company will also decide whether to develop technologies internally, purchase them or work with partners to reduce investment requirements and speed up execution.
Technology priorities include battery-electric vehicles, more efficient internal-combustion engines, software-defined vehicles, advanced driver-assistance systems and wider adoption of artificial intelligence.
The company also plans to make its manufacturing operations and supply chain more resilient. Cybersecurity, sustainability and digital systems will be part of this programme. It also plans to use strategic partnerships across products, technologies, components and manufacturing.
Integrated Global Auto Major
Tata Motors PV said it plans to transform into an integrated global automobile company over the next five years.
Its mainstream vehicle brands will remain centred in India but expand selectively into overseas markets. JLR's luxury brands will continue to have a strong presence in advanced economies.
The two businesses will seek greater synergies in batteries, suppliers, software, digital technology, international sales and strategic partnerships.
Tata Motors PV and JLR have already started sharing manufacturing infrastructure at the Panapakkam plant in Tamil Nadu. The group expects closer collaboration to improve scale, accelerate learning and support capital discipline.
It also plans to use the wider Tata Group ecosystem for batteries, digital capabilities, technology and other parts of the automotive value chain.
JLR will remain an important part of the consolidated growth plan. For FY27, the luxury vehicle business has targeted revenue of about £26 billion, an EBIT margin of around 4%, and breakeven operating cash flow.
JLR is also preparing to launch five products over two years, led by the Range Rover Electric and the first vehicle from the new Jaguar range.
The group's five-year plan will therefore depend on growth in both parts of the business: the expansion of Tata Motors PV in India and selected overseas markets, and the recovery and renewal of JLR's global luxury portfolio.
The company expects product expansion, technology sharing, cost control and stronger cash generation to support its transition into a larger and more integrated global automobile group.