Tata Motors is aiming to maintain its share of India's electric passenger vehicle market, with Chairman N. Chandrasekaran stating at the company's Annual General Meeting (AGM) that the automaker is targeting a 40%-45% market share over the medium term.

The target comes as domestic and international manufacturers continue to expand their electric vehicle portfolios, increasing competition in a segment where brand established an early presence. At the same time, the company expects its EV volumes to grow over the coming decade as electric mobility adoption increases in India. According to Chandrasekaran, company strategy is based on three areas: product expansion, production capacity and ecosystem development.

Expanding EV portfolio across segments

Company has developed an electric vehicle portfolio spanning multiple market segments. The company currently offers electric versions of the Tiago and Tigor in the hatchback and compact sedan categories, alongside the Punch and Nexon in the compact SUV segment.

Higher in the range, the Harrier and Safari are positioned in larger SUV categories, while the recently launched Sierra is positioned in the premium SUV segment. Brand is also preparing to introduce electric vehicles under the Avinya brand, signalling a move towards software-centric EVs. The Harrier.ev and Sierra.ev are expected to form part of the company's strategy beyond the sub Rs. 2 million (US$ 20,960) price segment, providing exposure to higher-value electric vehicle categories.

Capacity expansion to meet rising demand

The company is increasing production capacity to support demand. And currently produces approximately 9,000 to 10,000 electric vehicles per month.

Managing Director and Chief Executive Officer Shailesh Chandra has stated that the company intends to increase output by at least 50% over the next three to four months, taking monthly production capacity to nearly 15,000 units.

The planned increase follows a rise in bookings, with demand currently exceeding supply. Consumer interest in electric vehicles has been influenced by higher fuel prices and broader energy market volatility following the West Asia crisis, factors that have increased attention on vehicle operating costs among buyers.

Building the EV ecosystem

Alongside products and manufacturing capacity, company continues to focus on charging infrastructure and ownership experience as factors supporting EV adoption.

Chandrasekaran stated that brand along with its partners have contributed to the deployment of a network of home and public charging solutions. The company continues to work with charging-point operators and energy companies to expand charging coverage across major cities and highways.

The objective is to make electric vehicles suitable for use as primary vehicles by reducing concerns related to charging availability and driving range, rather than positioning them solely as secondary or occasional-use vehicles.

The comments follow the start of FY27. Between April and June, company remained the largest electric passenger vehicle manufacturer in India, with EV sales increasing and contributing to the company's overall passenger vehicle performance.

Annual electric passenger vehicle sales in India are approaching 220,000 units, with EV penetration increasing into the mid-single-digit range. Vehicle availability, production capacity and charging infrastructure continue to expand.

Chandrasekaran stated that maintaining a 40%-45% market share will require continued investment across the EV portfolio, manufacturing capacity, charging infrastructure, localisation and the broader ownership ecosystem.

Focuses on resilience and localisation

Alongside its EV strategy, brand is placing greater emphasis on risk management, localisation and operational resilience across its automotive businesses. Speaking to shareholders, Chandrasekaran identified execution challenges, supply-chain disruptions and cybersecurity threats as risks facing the Group's automotive operations.

He noted that a recent cyber incident at Jaguar Land Rover (JLR) had been addressed but stated that cybersecurity has become an industry-wide challenge requiring continuous investment rather than one-time solutions.

The comments reflect the Group's view that cyber resilience is becoming increasingly important as higher levels of connectivity, over-the-air software updates and cloud-based services expand potential vulnerabilities across manufacturing operations, IT systems and connected vehicle platforms.

According to Chandrasekaran, cyberattacks can affect production, customer trust and financial performance, making security measures increasingly important. In response, Tata Motors and JLR are strengthening safeguards across manufacturing systems, corporate IT infrastructure and software-defined vehicle architectures. The Group's approach aligns with broader industry trends, although the AGM remarks suggest a greater board-level focus on cybersecurity readiness and monitoring.

Agratas central to battery localisation strategy

Chandrasekaran also highlighted battery manufacturer Agratas as part of company's localisation strategy. Agratas is expected to begin battery cell production in calendar year 2027, with initial output intended to supply both Jaguar Land Rover and Tata Motors.

The initiative is intended to reduce dependence on imported batteries, lower exposure to commodity price fluctuations and currency volatility, and improve control over a critical component as EV production volumes increase.

Local battery cell manufacturing is also expected to support long-term cost and profitability objectives in electric vehicles. As Tata Motors and JLR expand their EV portfolios, access to in-house battery cells is expected to contribute to pricing stability and cost management.

The battery programme forms part of a broader localisation strategy that includes increasing domestic sourcing of key components and diversifying supply chains in response to evolving geopolitical and tariff-related risks affecting global trade. The focus on EV expansion, manufacturing capacity, charging infrastructure, cybersecurity, supply-chain security and battery localisation reflects approach to its automotive operations as the transition to electric mobility continues.