Tata targets $100 billion auto business in five years, sees EV share holding above 40%

Tata Group expects its automotive business to grow to $100 billion over the next five years, with continued investment in electric vehicles and new product launches, Chairman N. Chandrasekaran said on Wednesday.

Speaking at the annual general meeting of Tata Motors Passenger Vehicles (TMPV), Chandrasekaran said the group's passenger vehicle and luxury car businesses together were targeting annual revenue of $60 billion by fiscal 2031, while its commercial vehicle business aimed to contribute another $40 billion.

"I want to say that both companies (Tata Motors Passenger Vehicles Ltd and Tata Motors Ltd) have got very ambitious targets," Chandrasekaran, who is also the Chairman of TMPV said.

He said Jaguar Land Rover (JLR), the British luxury carmaker owned by Tata Motors, was expected to contribute $45 billion-$50 billion of the passenger vehicle revenue target, with Tata Motors' domestic passenger vehicle business accounting for about $15 billion.

The combined passenger vehicle businesses are expected to generate more than $5 billion in profit, he added.

Tata Motors' domestic business has earmarked capital expenditure of $40,000 crore over the next five years, while JLR plans to invest about 20 billion pounds over the same period.

“"Basically, in the decade between FY20 and FY30, the company wants to achieve a 10x growth in volumes with an ambition of 1.2 million plus vehicles and achieve a market share of 20% from the current 14.2%," he said.

He said the company would continue to launch "aspirational" products and strengthen its model pipeline across internal combustion engine and electric vehicles.

Tata Motors, India's largest electric passenger vehicle maker, aims to maintain its EV market share at 40%-45%. It is around 42% at present.

The company entered fiscal 2027 with a strong product pipeline, Chandrasekaran said, adding that JLR would roll out a series of launches in the second half of the year.

The company is also significantly investing in digital technologies, especially AI, across the value chain and the collaboration between Tata Motors' Passenger Vehicles and JLR is getting stronger, leveraging the complementary capabilities in manufacturing, technology and people, he said.

TMPV and its subsidiary Jaguar Land Rover Automotive in February this year commenced operations at its new facility at Panapakkam in Tamil Nadu's Ranipet district.

The successful commencement of the operations of the TML PV and JLR facility at Tamil Nadu also represents a very significant milestone, Chandrasekaran said.

He also said the planned demerger of Tata Motors' passenger and commercial vehicle businesses into separately listed entities would help create more focused, globally competitive mobility businesses.

Chandrasekaran said JLR's performance had been affected by geopolitical tensions in West Asia, supply chain disruptions and a cyber incident that forced a temporary production halt for nearly two months, contributing to a 21% decline in revenue to nearly 23 billion pounds.