Tata Motors is gearing up for a major EV revival in FY26, banking on new electric SUV launches, improved infrastructure, and a rebound in consumer sentiment. After a nearly 10% drop in EV sales in FY25—mainly due to the expiry of the FAME II subsidy and sluggish fleet demand—the company is now placing big bets on the Harrier.ev and Sierra.ev to drive growth. Group CFO PB Balaji remains optimistic, citing rising interest among personal EV buyers and a strong position in India’s evolving electric mobility market.
New EV Launches: Harrier.ev and Sierra.ev Take Centre Stage
Tata Motors plans to launch the much-awaited Harrier.ev this fiscal year, followed by the Sierra.ev, marking a significant leap in its EV journey. These vehicles are expected to appeal to the personal-use segment, which is now a bigger priority due to waning fleet sales. The company is also upgrading its current EV models to spark new demand across urban and semi-urban markets.
Despite tough competition from global and domestic players, Tata Motors still leads India’s EV segment. The new launches aim to reaffirm this leadership by offering improved tech, design, and range—tailored for Indian roads and buyers.
EV Infrastructure Expansion Bolsters Tata’s Strategy
Infrastructure remains a key growth enabler for Tata Motors. PB Balaji revealed that India now has over 21,000 fast-charging stations, helping reduce range anxiety and boosting confidence among potential EV buyers. This rapid expansion supports Tata’s push into tier-2 and tier-3 cities, where affordability and accessibility matter most.
Additionally, Tata Motors is working closely with partners to build a robust EV ecosystem, focusing on battery supply, servicing, and digital support for buyers. This holistic strategy could give it a clear edge over newer entrants.
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FY25 Dip, But Record Group Investment Signals Long-Term Bet
While Tata Motors’ FY25 EV sales dipped to 65,000 units, the company isn’t pulling back. Instead, it has invested a record ₹48,000 crore across the group, including ₹8,400 crore in standalone operations and £3.8 billion in JLR. Although net profits dropped 51% in Q4 FY25, total revenue held steady at ₹1.19 lakh crore.
On a positive note, JLR saw 1.1% volume growth, driven by strong luxury SUV sales in Europe and North America. This global performance is helping offset weak domestic demand and reinforces Tata’s long-term EV ambition.
What Lies Ahead for Tata Motors’ EV Strategy?
With consumer interest rising and government policies shifting towards clean mobility, Tata Motors is positioning itself for a smart comeback. A balanced product mix, deepening EV ecosystem, and sustained capital investment indicate a well-thought-out revival plan.
If these new launches succeed, Tata Motors could set a new benchmark for Indian EV adoption—not just among early adopters, but also the mass market.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
