The industry is expected to grow at a compounded annual growth rate (CAGR) of 6.7 per cent. India’s secular GDP growth rates, sharp growth in high income households, faster replacement cycle with vehicle ownership cycles shortening to 4-5 years will be key drivers, the company said in a presentation at its Investor Day on Tuesday.
SUVs will continue to be the largest & fastest-growing segment as a younger & ‘digitally native’ customer cohort becomes the majority. The segment share will increase to 60 per cent by FY2031 from 55 per cent at present, it added.
By FY2031, over 45 per cent of the industry will be CNG & EV, the company said.
The Indian Industry will reach 15-20 per cent EV Penetration, it said.
The company expects industry EV volumes to reach over 10 lakh units by FY2031 from 2.2 lakhs in FY 2026.
Tata Motors PV expects its annual volumes to increase from around 6.4 lakh vehicles in FY26 to more than 1.2 million units by FY2031.
The company said It will have 6 new nameplates in its product portfolio by FY2031, which will capture existing segments, and also create new segment.
Tata Motors PV is betting on EVs and CNG. It aims for over 30 per cent penetration in EV and over 25 per cent market share in the CNG segment.
The company plans to expand its capacity to 1.3 million units from 900000 units in 2-3 years’ time. It plans to invest Rs 37,500-40,000 crore through FY2029 for capacity creation and its capital expenditure is expected to be 7 per cent of its revenue.
Tata Motors Passenger Vehicles expects to increase revenue from the domestic passenger vehicle business to Rs 1.4 lakh crore by FY2031 from Rs 58,500 crore in FY2026.
Overall, the company aspires to be amongst the top 5 value creating growth businesses with strong moats with consolidated revenue target of USD 60 billion.
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