business · 2026-10-12
Tata Motors targets 20% car market share by FY31
Photo: via The Hindu
Tata Motors' car business, now growing 40% a year with EVs at a quarter of its sales, wants 20% of India's passenger vehicle market by 2031, up from about 15% now.
How does Tata Motors Passenger Vehicles make money?
In the fiscal year ending March 2026, Tata Motors Passenger Vehicles makes money by selling cars and SUVs to buyers across India. In that year it sold about 6.42 lakh vehicles, earning most of its revenue from vehicles (85%) and spare parts (10%). But profits are still thin: in the first quarter of that year it lost ₹129 crore before tax as sales dropped 10.1%.
Why does profit lag behind sales growth?
Profit lags because sales growth hasn't yet translated into consistent earnings. In the first quarter of the fiscal year ending March 2026, volumes and revenue fell, and Tata reported a pre-tax loss of ₹129 crore, with profit hit by adverse volumes and realizations. The annual report emphasizes growth and market share over margins, so profitability remains a work in progress.
Who is number one in cars?
Maruti Suzuki is number one, with nearly 40% of India's passenger vehicle market, according to Auto Punditz (an automotive data firm). Tata Motors is a distant second: its own annual report puts it at 14.1% share in the second half of the fiscal year ending March 2026, behind Maruti.
What are MPVs and why does Tata not make them yet?
MPVs are multi-purpose vehicles, boxy vans or people carriers for larger families. Tata Motors sells cars, SUVs and EVs today, but not MPVs. Its CEO says entering segments it currently misses, like MPVs and certain lifestyle SUVs, is a clear growth target for reaching 20% market share by 2031.
Why did Tata split its car and truck business?
Until October 1, 2025, Tata Motors was one company making trucks, buses, and cars. On that date, it split into two separately listed firms: the commercial vehicle business, now Tata Motors Limited, and Tata Motors Passenger Vehicles Limited, the car and SUV business being discussed. The aim was to give each business its own distinct focus on strategy and growth.
Is 25% EV sales high for India?
No. Industry-wide EV penetration in India is far lower. In the fiscal year ending March 2026, EV sales across all vehicle types, including two- and three-wheelers, grew 30% to 2.66 million units, but that was only 8.62% of total automotive sales substantially due to two- and three-wheelers. Tata's 25% is specific to its own passenger vehicle sales.
How did they gain share so fast?
Tata grew mainly by riding India's booming SUV market with aggressive new launches, and by leading in EVs and CNG. Sales nearly doubled in the year after splitting from the truck business, making it the biggest share gainer and the No. 2 carmaker, though far behind leader Maruti Suzuki.
Are they making money yet or still losing?
Not yet consistently. In the first quarter of the fiscal year ending March 2026, Tata Motors reported a pre-tax loss of ₹129 crore, with volumes down 10.1% and revenues at ₹10.9K crore. The company said profitability was hurt by lower volumes and realizations. It expects improvements from the demerger, GST cuts, and festive season.
Source: thehindu.com