Tata Motors Passenger Vehicles to Invest Up to ₹40,000 Crore in Capacity Expansion, Targets 13 Lakh Units Annual Production by FY31
Tata Motors Passenger Vehicles Limited (TMPV) has lined up capital expenditure of up to ₹40,000 crore over the next five years to expand manufacturing capacity and broaden its product portfolio, according to its investor presentation. The company aims to nearly double annual volumes to over 12 lakh units by FY31, targeting a 20 per cent share of the domestic passenger vehicle market.
Managing Director and CEO Shailesh Chandra said the company will add four lakh units of additional annual capacity to its current nine lakh units, taking total annual production capacity to 13 lakh units within two to three years. The capex is estimated at around 7 per cent of revenue through FY31, with the bulk concentrated in the FY27-FY31 period and a step-up planned in the initial years to support capacity expansion.
On the product side, TMPV plans to add six new nameplates by FY31, raising its total portfolio to 15 models from nine currently. Three of these will target existing high-growth segments, while two electric vehicle models will be aimed at new market segments. The company has set an internal target of 30 per cent EV penetration by FY31, supported by a planned ten-model EV portfolio.
Chandra noted that growth will be driven by a multi-powertrain strategy, with electric vehicles and CNG variants expected to contribute a significant share of incremental volumes. EV output for the company is projected to rise from 2.2 lakh units in FY26 to around 3.5 lakh units in FY27, in step with industry-wide EV penetration expected to reach 15-20 per cent by FY31.
The capacity build-out is set against an industry backdrop in which the overall domestic passenger vehicle market is projected to grow from 47 lakh units in FY26 to 64 lakh units by FY31, with rising average selling prices and increasing CNG and EV penetration across the sector.