Tata Motors has reportedly announced plans to invest up to Rs350bn ($4.1bn) over the next five years.
This substantial investment aims to solidify the company’s position in India’s rapidly evolving electric vehicle (EV) market and expand its current vehicle lineup.
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The investment will see Tata Motors nearly double its model offerings from eight to fifteen, including the introduction of additional EVs and compressed natural gas (CNG) vehicles, reported Reuters.
The company’s investor day presentation also highlighted plans to enhance the technology features of their vehicles.
India, currently the world’s third-largest car market, is setting the stage for stricter emission norms from 2027 and is targeting EVs to account for 30% of all car sales by 2030.
Despite not disclosing its investment plan for the year to March 2026, Tata Motors previously indicated that the domestic businesses, including commercial vehicles, would see a capital expenditure of about Rs80bn.
Competition in the combustion engine market is intensifying, with rivals such as Mahindra & Mahindra overtaking Tata in sales.
Furthermore, MG Motor has been challenging Tata’s dominance in the EV sector with its “Windsor” model, which has outsold Tata’s offerings since late last year.
Nevertheless, Tata Motors is maintaining its ambitious target of a 16% market share by March 2027, with aspirations to reach between 18% and 20% by March 2030.
However, the company reported a 6.15% decline in total sales across domestic and international markets, with 72,753 units sold in April 2025 compared to 77,521 units in April 2024.
This downturn includes a 7% drop in domestic sales and an 8% decline in commercial vehicle sales.
