Tata Motors PV to Invest around Rs 10,000 Cr in 2 Years for Capacity Addition, Product development

Tata Motors is set to spend Rs 500-1,000 crore more annually than previously planned on its passenger vehicle business over the next two years, as the automaker accelerates investments in new products, electric vehicles and manufacturing capacity expansion.

Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra said the company’s annual investment would rise to 7-9% of standalone passenger vehicle revenue, compared with its earlier guidance of 6-8%.

Based on Tata Motors’ standalone passenger vehicle revenue of Rs 58,500 crore in the financial year ended March 2026, the revised guidance translates to annual investments of around Rs 4,000-5,200 crore. In the previous financial year, the company’s capex stood at about Rs 4,300 crore, or around 7.5% of revenue.

The higher spending comes as Tata Motors prepares for the next-generation versions of the Nexon, Harrier and Safari, while work on new nameplates has also begun, apart from planned capacity expansion.

The company is preparing for an aggressive product rollout across internal combustion engine and electric vehicle segments. Tata Motors launched the facelifted Tata Tiago EV on Thursday and plans 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.

Tata Motors is also planning to increase passenger vehicle production capacity by another 300,000 units annually through a brownfield expansion over the next few years, taking total installed capacity beyond 1 million units from around 850,000 units currently.

The expansion is likely to take place at the company’s Sanand facility in Gujarat, where Tata Motors operates two passenger vehicle plants. The automaker also has a plant in Pune.

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

One of Tata Motors’ immediate priorities is ramping up production of the Sierra and other EV models after receiving strong demand following their launches. However, Chandra said supply constraints at one or two suppliers, particularly related to casting for the new engine, had affected production ramp-up.

Tata Motors currently produces around 10,000 EVs a month and plans to raise output by at least 50% to about 15,000 units monthly over the next three to four months.