Tata Motors Plans For 20% Market Share Of Passenger Vehicles By FY2030

Tata Motors expects the Indian passenger vehicle market will breach the 60 lakh unit sales milestone by 2030. The Indian manufacturer plans to increase its market share to approximately 20 per cent by the financial year 2030 (FY30). Tata Motors aims to achieve this with a slew of new electric and ICE models, according to a new report.

Shailesh Chandra, MD, Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles, said, “We expect that the Indian auto industry (PV) would touch 6 million units by FY30 which basically would be a secular growth trend of 6 per cent from now onwards.” In FY24, Tata Motors claimed a market share of nearly 14 per cent in the passenger vehicle (PV) market. 

The growth is expected to be driven by factors like rising disposable income and decreasing vehicle ownership period. Chandra also believes that the share of upgraders and additional car buyers will also increase as that has been the trend recently, while the share of first-time buyers is reducing. 

The Indian automotive market has seen an increasing preference for SUVs. With a plethora of SUV launches in the pipeline, the SUV segment’s share will keep increasing and will happen at the cost of hatchbacks and sedans, according to Chandra. 

“We have already announced the launches of the Curvv and Sierra over the next two years which will help capture the growing SUV segment,” he added. Furthermore, Tata Motors will also add more powertrain options to its models to capture the growing EV and CNG markets. 

Chandra also mentioned that with the stricter CAFE III (Corporate Average Fuel Efficiency) norms kicking in from 2027, the share of electric vehicles (EVs) and CNG vehicles will increase and internal combustion engine (ICE) vehicles will also see an inflationary trend. He added that certain automotive manufacturers haven’t been able to meet the CAFE II norms with almost negligible amounts of EV penetration. 

“In the new norms it will become extremely difficult, if not impossible to comply without EVs in the mix as companies will face significant penalties and also face the risk of adverse impact on brand image,” added Chandra.