Tata Motors to invest over Rs 45,000 crore in the car business by FY30

The company plans to invest 6-8% of its annual car revenues in expanding its portfolio and technology. Co. will likely have a portfolio of over a dozen cars in the country by the end of the decade.

By Ketan Thakkar and Kiran Murali calendar 26 Jun 2024 Views icon5736 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Tata Motors to invest over Rs 45,000 crore in the car business by FY30

Tata Motors, India’s third-largest car maker, plans to invest over Rs 40,000 to 45,000 crore in its passenger vehicle business in the next 5-6 years.

Intending to capture a fifth of the fast-growing Indian passenger vehicle market by the end of the decade, Tata Motors plans to expand its addressable market to 80% from the current 53%, requiring investments in products and technologies. The company will likely almost double its product portfolio and have over a dozen cars or nameplates by FY30.

Earlier, it had announced plans to invest Rs 16,000 crore to Rs 18,000 crore in Tata Passenger Electric Mobility, its electric vehicle arm. In addition, the top management informed that Tata Motors will invest 6-8% of its revenues annually in the coming 5-6 years in its ICE arm.

This roughly translates to over Rs 4000 crore per annum on a revenue of Rs 51,000 crore, which cumulates to Rs 24,000 crore.  

Autocar Professional learns that given the company's plan to launch all new products like Curvv and Sierra in the next 12 months, expand its addressable market to 65%, and need for more products to enter new segments, post-2026-27, there is an expected upward bias towards the planned investment.

Shailesh Chandra, MD of Tata Motors' Passenger vehicle business told media persons on Wednesday, “We plan to capitalise on all the industry transitions and deliver market-leading growth. We are targeting a market share of 20% by FY30, and there are various levers that we will utilise to drive the market share growth.”

Tata Motors currently has seven products and seven nameplates, which address only 53% of the total PV market. In this 53% addressable market, the company has a 26% segment market share.

“We aim to increase our addressable market by 80% by FY30 by adding new nameplates. We have already announced the launches of Curve and Sierra over the next two years, which will help us capture the growing good SUV segment. We will strive to have a meaningful presence across all of our addressable segments of 25% plus market share in the addressable market by 80%,” added Chandra. 

The company believes the market will grow to 6 million by the decade's end, and Tata Motors will look to sell over 1-1.2 million vehicles by FY30. Chandra expects EV sales to account for over 30-40% of its total sales by then.

To be sure, the company has revised its EV penetration guidance downward from its earlier stated goal of 50%.

“We will strengthen our multi-powertrain strategy by expanding our portfolio across EVs and CNG and introducing segment-leading features to attract investors. For EVs, we are proactively driving the mainstreaming of EVs with an ecosystem approach to address the barriers to adoption. We will expand our EV portfolio with diverse offerings to attract new customers,” added Chandra.

 

Tags: Tata Motors
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