Tata Motors Sets the Stage For FY27, To Ramp Up Production

Tata Motors Passenger Vehicles (PVs) to enter FY27 with a robust pipeline of new launches and multi-powertrain offerings. The domestic demand continues to sustain, led by growth in SUVs, CNG and EV.
 

“We will ramp up production to meet demand. We expect to build on the strong momentum of H2 and continue to deliver profitable and industry-beating growth in FY27, supported by a robust demand pipeline, planned pipeline of new products, and established multi-powertrain strategy, whilst mitigating margin headwinds through structural cost reductions,” said N Chandrasekaran, chairman.

However, geopolitical developments remain a key monitorable to mitigate potential supply-side and commodity price risks. 

Year At a Glance

In FY2026, the company sold over 92,000 EVs marking a 43.4 per cent growth over the previous year, sustaining its position as a market leader in EVs in India and the third largest player in PVs.

The year 2026 began with expectations of steady global growth, soft inflation and easier financial conditions. However, the introduction of US tariffs in May 2025 created significant challenges globally. India responded by reducing its GST rates to boost domestic consumption which helped prop up domestic growth rates in the second half of the year. 

The year also witnessed positive developments including the signing of the landmark India-EU and India-UK trade agreement, US-UK and the interim India-US trade deal. However, by early March, the start of the West Asia crisis brought rising concerns about stagflation, falling output coupled with rising inflation.

“We delivered highest-ever sales of ~6.42 lakh cars and SUVs during the year, achieving robust year on year growth of 15.3 per cent, nearly twice the industry average. In the second half of the fiscal year, we emerged as the second largest player in the industry, with a market share of 14.1 per cent, reflecting the growing scale, competitiveness and effectiveness of our multi-powertrain strategy,” said the chairman. 

Growth during the year was broad based, marked by a clear shift in customer preference and sales momentum towards greener powertrains. Nexon and Punch emerged as the highest selling models in the industry in the second half of the fiscal year. Successful launch of the new Sierra, coupled with sales of CNG-powered vehicles, responded to evolving customer preferences. Additionally, re-entry in the South African market marked a strategic step forward towards greater internationalisation. 

The business delivered revenues of INR 58,465 crore in India, registering a healthy growth of 20.7 per cent over FY25 with steady EBITDA and EBIT margins of 6.9 per cent and 1.4 per cent respectively. 

Looking Ahead

TMPV is preparing to strengthen its strategy in FY27 by focusing on aspirational products, building customer trust, and enhancing the ownership journey. The company intends to integrate digital technologies, artificial intelligence, and advanced analytics more deeply into product development, manufacturing, and customer engagement. Connected technologies will play a key role in delivering personalized and proactive services to customers.

Collaboration between Tata Motors PV and Jaguar Land Rover will continue, particularly in manufacturing, technology, and workforce development. This partnership is designed to improve scale, share expertise, and maintain financial discipline. A major milestone in this collaboration is the launch of operations at the new Panapakkam manufacturing facility in Tamil Nadu, which is expected to deliver production efficiencies and scale advantages for both businesses.

Looking ahead, Tata Motors PV will keep investing in innovative products, flexible vehicle platforms, and infrastructure to support zero-emission mobility. 

The automotive industry is operating in a dynamic and complex environment shaped by evolving consumer preferences, heightened competition, shortening product cycles, regulatory shifts and policy divergence, cost pressures and geopolitical uncertainties. These factors have added layers of complexity and growth opportunities, which players will need to navigate with increasing agility and strategic clarity to win. 

The company has set an ambitious target of achieving net-zero emissions in its passenger-vehicle operations by 2040, underscoring its commitment to sustainability and future-ready mobility solutions.