Tata Motors sees EVs, CNG at 45% of PV market by FY31

Tata Motors, India's largest electric car maker expects electric vehicles and CNG models together to account for 45% of India’s passenger vehicle market by FY31. At its investor day on Tuesday, the company said EV penetration in the domestic passenger vehicle market could rise to 15%-20%, with annual EV volumes reaching 1 million-1.1 million units. CNG, too, is expected to gain share over the period, supported by lower running costs and wider fuel availability.

The remarks come as EV penetration in the passenger vehicle market has crossed 6% and is seen reaching 8%, while CNG’s share has risen to 22%.

Tata Motors estimates that of the additional passenger vehicle volumes expected between FY26 and FY31, EVs will contribute nearly 47% and CNG another 35%. That would make the two powertrains the main drivers of incremental market growth.

The company is aligning its own strategy to that shift, targeting 30% EV penetration in its passenger vehicle portfolio and a 25% share of the CNG segment. It said EV growth would be supported by improving customer acceptance, wider charging infrastructure and tighter regulatory requirements, while CNG demand would benefit from expansion of the gas distribution network and continued interest from personal and fleet buyers.

It expects India’s passenger vehicle market to grow to 6.4 million units by FY31 from 4.7 million units in FY26. Within that expansion, EVs and CNG are expected to account for a substantial share of new demand.

The company is set to launch the Sierra.ev on June 30, followed by the Safari.ev in September, while the Avinya premium EV is expected within the next year.