Tata Motors’ FY31 Plan: Rs 40,000 Crore, 15 ICE Models and 10 EVs

Tata Motors laid out its FY31 plan at the Passenger Vehicle Investor Day in Mumbai on June 23, committing Rs 37,500 to Rs 40,000 crore in capex over five years to lift annual production capacity from 900,000 to 1.3 million units, grow sales to more than 1.2 million vehicles, and lift its share of India’s passenger vehicle market to 20%. The plan, presented by Managing Director and CEO Shailesh Chandra and Chief Financial Officer Dhiman Gupta, doubles down on the company’s leadership in electric vehicles while expanding the rest of the portfolio at the same pace.

Most of the early coverage will lead with the EV lineup, anchored by the Sierra EV debuting on June 30, 2026, and the Avinya premium EV due by the end of 2026. The slept-on part of the plan is what Tata is doing in parallel: six new internal-combustion-engine nameplates, more than 20 ICE facelifts and refreshes, and a CNG push that takes the combined share of EVs and CNG in Tata’s portfolio to a level that, on the company’s own framing, will be 45% of the Indian passenger vehicle industry by FY31.

Tata’s FY31 Bet: Rs 40,000 Crore, 1.3 Million Capacity

The five-year capital outlay sits between Rs 37,500 crore and Rs 40,000 crore, with capacity rising from 900,000 units a year to 1.3 million units within two to three years. Sales are guided from 640,000 vehicles in FY26 to more than 1.2 million by FY31, a near-doubling that takes Tata from its current position as India’s second-largest passenger vehicle maker to a 20% share of the domestic market.

Revenue is targeted at around Rs 1.4 lakh crore by FY31, up from Rs 58,500 crore in FY26. Margins are guided to a 10% EBITDA level and an EBIT margin of more than 5%, with capex held at about 7% of revenue through the period, according to Gupta. The Investor Day on June 23, 2026 framed the spend as a self-funding expansion, with free cash flow expected to turn positive after the investment phase through operating leverage and improving EV profitability. Capacity will be added at Pune, Sanand, Ranjangaon and Panapakkam using new facilities and structural expansion of key shops, with the aim of building flexible and fungible manufacturing.

The macro backdrop helps. Tata’s projection is that India’s passenger vehicle market grows from 4.7 million units in FY26 to 6.4 million by FY31, and that the median industry selling price rises from Rs 11 to Rs 12 lakh to around Rs 15 lakh. A bigger, pricier market gives the Rs 40,000 crore plan room to compound without forcing Tata to win share at any cost.

Tata Motors PV sets FY31 targets with Rs 40000 cr capex

• Rs 40,000 crore capex over FY27 to FY31
• Annual production capacity target: 1.3 million units in 2 to 3 years
• Annual sales target: more than 1.2 million vehicles by FY31
• Domestic passenger vehicle market share target: 20%
• Revenue target: around Rs 1.4 lakh crore by FY31

Sierra and Avinya Lead Tata’s 10-Model EV Lineup

Tata’s EV portfolio grows from six nameplates today to ten by FY31, with four new launches and more than ten product refreshes along the way. Two of the four are already known: the Sierra EV, due on June 30, 2026, and the Avinya X, the first production Avinya, due by the end of 2026. The remaining two slots are unfilled on the roadmap, though the Avinya concept Tata has shown publicly confirms a Gen 3 architecture, and Sierra EV specifications and pricing point to 65 kWh and 75 kWh battery options and an expected price band around Rs 19.57 lakh to Rs 24.94 lakh.

The battery roadmap is the heart of the EV push. Tata disclosed that its EV battery technology will evolve from the current 30 kWh range to packs exceeding 75 kWh, enabling two to three times higher range, up to three times faster charging, and 20 to 23% higher energy density compared with current technologies. The company is also working on more integrated powertrain architectures and next-generation thermal management aimed at improving efficiency, charging performance and overall refinement. The roadmap signals Tata’s intent to move beyond mass-market EVs into premium and long-range segments, where range and charging convenience remain the key barriers.

The base is real. Tata sold 92,000 EVs in FY26, up 24% from the previous year, retained more than 40% of the domestic EV passenger vehicle market, and has crossed cumulative sales of 300,000 EVs since inception. The overall passenger vehicle EV industry ended FY26 at around 220,000 units, and Tata expects the segment to expand to 1 to 1.1 million units by FY31, translating into 15 to 20% penetration of the broader PV market. The push past 30% EV penetration within Tata’s own portfolio by FY31 is what the company is calling a multi-powertrain future, with EVs and CNG doing the heavy lifting of the next leg of growth.

The Sleeper: ICE Expands From 9 to 15 Models

The ICE portfolio grows from nine models today to fifteen by FY31. Six of those are new nameplates. More than twenty are facelifts and refreshes. The current nine span Sierra, Harrier, Safari, Nexon, Punch, Altroz, Tiago, Curvv and Tigor, and the new ICE models will land in existing segments while also opening white spaces in the Indian passenger vehicle market. The new models, the Investor Day presentation said, will capture existing segments and create new ones.

Production capacity will rise to 1.3 million units through a multi-pronged approach: new facilities and structural expansion of key shops at existing plants. The plants at Pune, Sanand, Ranjangaon and Panapakkam are being retooled for flexible and fungible manufacturing, with supplier capacities also being lifted to support higher volumes. The aim is to let ICE, EV and CNG share the same lines where it makes sense.

The strategy covers high-growth segments and white spaces, and the target is a 25%+ market share in every segment Tata operates in, with plans to cover over 80% of the country’s passenger vehicle market by FY31. A multi-powertrain approach is meant to broaden the customer base rather than push everyone down a single technology path. The current nine ICE models and the planned six new nameplates are how Tata gets there without ceding the segments where the demand is still petrol- and diesel-led.

The industry math supports the dual push. Median industry selling price is projected to rise from Rs 11 to Rs 12 lakh to around Rs 15 lakh by FY31, and the six new ICE launches are aimed at moving Tata up the price ladder alongside its EV push. The Rs 40,000 crore plan is not an EV bet that abandons ICE; it is an EV bet that funds an ICE expansion at the same time.

• 9 ICE models today, scaling to 15 by FY31
• 6 new ICE nameplates to be launched
• 20+ facelifts and refreshes planned for the ICE portfolio
• Capacity expansion across Pune, Sanand, Ranjangaon and Panapakkam

Multi-Powertrain: EVs and CNG at 45% of India by FY31

Chandra framed the next five years as a multi-powertrain market in which EVs and CNG together will be more than 45% of industry volumes by FY31. The supporting math: domestic EV penetration is expected to reach 15 to 20% by FY31, the EV market is projected to exceed 1 million units annually, and Tata is targeting more than 30% EV penetration within its own passenger vehicle sales. EVs and CNG, on Chandra’s framing, are the two growth engines the plan is built around, with ICE continuing to carry the bulk of the volume in the near term.

On EVs, Tata already leads the Indian market with a 40%+ share. On CNG, Tata has the second-largest portfolio of CNG cars in India, behind only Maruti Suzuki, and the company is targeting 25%+ market share in CNG by FY31. The Safari EV, a seven-seater, has been the Safari EV, spied as a Mahindra XEV 9S rival, would extend the EV lineup into the people-mover segment Tata does not yet cover, with a festive-season 2026 launch as one option on the table. The two unannounced EV slots on the FY31 plan are widely expected to be filled by the Safari EV and an electric MPV, though Tata has not confirmed either.

The framing matters because it positions Tata as a multi-powertrain operator, not an EV pure play. The bet is that ICE, EV and CNG can all grow simultaneously as the industry expands from 4.7 million units to 6.4 million units. The plan assumes all three powertrains find new buyers rather than trading share with each other inside Tata’s own showrooms.

Chandra said the future of the Indian automobile market will be increasingly multi-powertrain, with EVs and CNG vehicles expected to account for more than 45% of industry volumes by FY31, supported by favourable regulations, expanding infrastructure and changing consumer preferences.

Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, at the Investor Day on June 23, 2026.

Making EVs Pay After Subsidies End in FY28

The current production-linked incentive (PLI) scheme for the automobile and auto-component industry is valid until FY28. Tata’s response is to make the EV business work without it. The company said its EV business is already approaching EBITDA breakeven excluding PLI benefits, and expects margins to steadily improve through scale, product mix, cost optimisation and pricing actions. Profitability is expected to move closer to parity with ICE vehicles by the end of the decade.

Management outlined an aggressive cost programme: localise critical EV components, consolidate power electronics across models, optimise battery-pack design, and drive greater integration of high-voltage systems. The battery roadmap itself is a cost lever: future-generation batteries with 20 to 23% higher energy density let Tata use smaller packs for the same range, or the same pack size for a longer-range vehicle, both of which reduce bill-of-materials cost. The 2027 CAFE norms add regulatory pressure on the ICE side, which strengthens the case for moving mix toward EVs and CNG. The strategy is to absorb the post-PLI, post-CAFE squeeze through scale, mix and cost, not through subsidy support.

The future EV portfolio is aimed at the premium and long-range segments, where Sierra EV and Avinya carry the price-point push. Higher-priced EVs lift the per-unit margin, which helps close the gap with ICE profitability even as PLI falls away.

• Localise critical EV components to reduce import dependence
• Consolidate power electronics across EV models
• Optimise battery-pack design for cost and energy density
• Integrate high-voltage systems for efficiency and scale
• Shift mix toward premium, higher-priced EVs such as Sierra.ev and Avinya

What It Means for Maruti, Mahindra and Hyundai

Maruti Suzuki still leads the Indian passenger vehicle market and the CNG segment, where it has held a commanding share for years. Tata’s 20% market share target by FY31, off a base of around 13 to 14% in FY26, requires taking volume from incumbents. The multi-powertrain plan is the instrument: ICE facelifts defend the volume base, CNG attacks Maruti’s stronghold, and EVs go after the premium SUV space where Mahindra and Hyundai are gaining ground.

The competitive map is segment by segment. The Safari EV will take on the Mahindra XEV 9S in the seven-seat electric SUV space. Avinya enters the premium EV space where Hyundai’s Ioniq 5 and a growing list of global players operate. The CNG push (25%+ market share target) directly targets Maruti’s CNG dominance, and the six new ICE nameplates take aim at the mid-SUV and compact-SUV segments where Hyundai and Mahindra have built share. The plan is zero-sum: every point of market share Tata takes by FY31 is a point Maruti, Mahindra or Hyundai gives up.

Frequently Asked Questions

When does the Tata Sierra EV launch?

The Tata Sierra EV is scheduled to debut on June 30, 2026, with expected battery options of 65 kWh and 75 kWh, an expected range of up to 550 km, and an indicative price band of Rs 19.57 lakh to Rs 24.94 lakh.

How many EVs will Tata Motors have by FY31?

Tata is targeting an EV portfolio of ten nameplates by FY31, up from six today. The plan includes four new EV launches and more than ten product refreshes, with Sierra EV and Avinya as the first two of the four new nameplates.

What is Tata Motors’ capex plan through FY31?

Tata Motors Passenger Vehicles plans to invest between Rs 37,500 crore and Rs 40,000 crore over FY27 to FY31, holding capex at about 7% of revenue through the period. The spend funds a capacity expansion from 900,000 units to 1.3 million units annually, the new model launches, and battery technology upgrades.

How will Tata’s EV business be profitable after PLI ends in FY28?

Tata says its EV business is already approaching EBITDA breakeven excluding PLI benefits, and expects EV profitability to move closer to parity with ICE by the end of the decade. The cost levers are localisation of critical components, consolidation of power electronics, battery-pack optimisation, high-voltage system integration, and a mix shift toward premium, higher-priced EVs such as Sierra.ev and Avinya.

How big will India’s EV market be by FY31?

Tata projects the domestic EV passenger vehicle market will exceed 1 million units annually by FY31, up from around 220,000 units in FY26. That implies industry EV penetration of 15 to 20% by FY31, with EVs and CNG together accounting for more than 45% of total industry volumes.