Tata Motors is working to reclaim its dominance in India’s electric vehicle (EV) market, aiming to achieve a 50% market share in the mid-to-long term. The company currently leads the Indian electric passenger vehicle segment but has seen its market share dip to around 40-41% due to increased competition and a decline in fleet sales.
Current Market Standing
Tata Motors sold approximately 65,000 EVs in FY25, marking a 10% drop compared to the previous year. The company’s market share has decreased from about 55% in the last fiscal year. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility, attributed this decline to the fragmentation of the market with around 20 models now available, including luxury cars.
Strategic Plans
To regain its market position, Tata Motors is focusing on two main strategies:
- Expanding Product Portfolio: The company plans to introduce new models in the above ₹20 lakh segment, including the upcoming Harrier EV and Sierra EV.
- Enhancing Value Proposition: In the lower pricing segments (₹8-12 lakh and ₹12-20 lakh), Tata Motors aims to strengthen its grip by enhancing the value proposition of its existing models like Tiago EV, Tigor EV, Punch EV, Nexon EV, and Curvv EV.
Addressing Different Segments
- In the ₹8-12 lakh segment, where Tata Motors holds a 75% market share, the company plans to maintain its dominance by updating existing models.
- The ₹12-20 lakh segment is highly competitive, with Tata Motors’ market share dropping to 33-35%. The company is looking to make its offerings more compelling with models like Nexon EV and Curvv EV.
- For the above ₹20 lakh segment, Tata Motors is entering with the Harrier EV and Sierra EV, expected to launch soon.
Key Models and Launches
- Harrier EV: Scheduled for launch on June 3, this model is expected to be a significant player in the higher price segment.
- Sierra EV: Expected to launch later this year, it will further expand Tata Motors’ presence in the premium EV segment.
Challenges and Opportunities
Tata Motors faces challenges in the short term due to intense competition and a decline in fleet sales. However, the company is optimistic about regaining its market share through strategic product launches and enhancing the competitiveness of its existing lineup.
As the Indian EV market continues to evolve, Tata Motors’ efforts to diversify its product portfolio and improve its value proposition across different segments are expected to play a crucial role in its journey to reclaim market leadership.
