Tata Motors Passenger Vehicles’ electric vehicle penetration jumped to around 25% this year, with demand for its EVs nearly three times the supply it is currently able to provide, according to its Managing Director Shailesh Chandra.
Chandra said the company’s EV penetration has risen from around 14% last year to roughly 25% currently, with demand growing faster than its ability to produce vehicles.
Tata Motors EV sales hit a new high of 16,549 units in August, while January-August number was at 93,164 units, surpassing 2025’s 81,125 units.
“The demand generation side, which is more on the booking side, it would have crossed 30% [if there was enough capacity],” Chandra said. “But inability to supply is holding that penetration. So, it is more supply side constraint.”
He said Tata Motors’ monthly EV production capacity has more than doubled from an average of around 7,500-8,000 units last year to more than 16,000 units currently.
“Last month, we have now ramped up the capacity beyond 16,000. So, we have doubled it,” Chandra said. The company is working to increase production further each month.
The supply constraint is mainly linked to the time needed for suppliers to expand capacity, rather than a lack of manufacturing capacity within Tata Motors, he said.
“Within Tata Motors, I can shift the capacities from here to there. But supply chain is a long walk,” Chandra said. Suppliers need to receive production schedules well in advance to expand capacity.
Higher fuel prices following geopolitical uncertainty has contributed to the shift towards EVs, but accordimg to him the change is now becoming more fundamental.
At the industry level, EV penetration has increased to around 8% from 4.5%, Chandra said, adding that it hit double digit next financial year.
“The shift is from 4.5% penetration of the industry to now 8%. And as I said, that next financial year, I clearly see that it might get into double digit,” he said.
Tata Motors’ EV demand comes in the back of new launches, higher vehicle ranges, faster charging and greater confidence in charging infrastructure and the technology.
Amongst other mainstream PV makers here, Tata Motors have the largest EV portfolio with seven models - the Tiago EV, Nexon EV, Punch EV, Harrier EV, Curvv EV, Tigor EV/Xpres-T (for fleet buyers), and the recently launched Sierra EV.