**Tata Motors Expands Premium EV Offerings Amidst Rising Competition**
Tata Motors Ltd, the pioneering electric vehicle (EV) manufacturer in India, is set to enhance its footprint in the premium EV market while maintaining a diverse product range across various price segments. The company, which launched its first electric vehicle, the Tigor, in 2018, introduced the EV variant of its Harrier sports utility vehicle (SUV) on Tuesday, priced at ₹21.49 lakh. This launch comes as Tata Motors faces increasing competition from MG Motor India, Mahindra & Mahindra (M&M), and Hyundai, which are all vying for a share of the growing EV market.
In the fiscal year 2025, Tata Motors’ market share in the EV sector dropped to 55.4%, down from 73.1% in FY24 and 84% in FY23, despite a total of 117,000 EVs sold in India during the same period. Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, emphasized the company’s strategy to cater to all price points. “The right way to look at the market is to divide it into three segments based on pricing. Through our launches this year, we will have two cars each in the entry, mid, and high segments,” Chandra stated in a recent interview. He also mentioned plans for further premium segment launches following the Harrier and Sierra.
Tata Motors aims to focus on volume sales rather than solely on revenue market share. Chandra pointed out that while selling more luxury vehicles can boost revenue, a brand’s popularity is ultimately determined by its volume share. The overall passenger vehicle market has seen modest growth, with only a 2% increase last year, and Tata Motors reported sales of 556,263 units, a 3% decline from FY24. “You have to try and excite a tepid car market through new launches,” Chandra remarked.
In the months of April and May 2025, Tata Motors’ share in the EV market fell to 38%, with 9,043 units sold, as competition intensified from new entrants like Windsor EV of JSW, MG Motor India’s offerings, Hyundai’s Creta EV, and Mahindra’s electric SUVs. On the stock market, Tata Motors shares dipped 1% to close at ₹704.30, reflecting a 5.5% decline in 2025, contrasting with a slight rise in the Nifty Auto index.
As Tata Motors navigates this competitive landscape, its commitment to innovation and market presence across all price segments will be crucial in maintaining its leadership in the electric vehicle sector.
**FAQ**
**What is Tata Motors’ strategy for the electric vehicle market?**
Tata Motors aims to strengthen its presence in the premium EV segment while offering products across various price points, focusing on volume sales rather than just revenue market share.