Explore how Tata Motors is reshaping the Indian electric vehicle market with bold EV strategies
Tata Motors has taken a bold and ambitious approach to expand its presence in the electric vehicle (EV) market. Over the past few years, the company has invested heavily in product development, infrastructure, and technology to become a leader in India’s growing EV space. But as new players enter the market and competition rises, the big question is—will Tata Motors’ aggressive strategy pay off?
This article takes a close look at Tata Motors’ current position, recent product launches, infrastructure expansion, market challenges, and what the future might hold.
Market Share: Losing Ground Despite a Head Start
Tata Motors once dominated the Indian electric vehicle market, holding nearly 70% of the market share. But that dominance is now under pressure. In May 2025, Tata sold about 4,319 EVs, which gave it a 35.4% market share—almost half of what it used to have.
Meanwhile, competitors are growing fast. MG Motor (now part of JSW Group) and Mahindra are rapidly catching up. MG sold 3,732 units (up 147% from last year), while Mahindra sold 2,604 units (up 338%). Tata’s own EV sales for April and May combined were down by 14% compared to the same period last year.
This drop in market share suggests that Tata’s lead in the EV market is no longer guaranteed. The company must now focus on defending its position while also trying to grow in new areas.
New EV Launches: Premium Segment Push
To regain momentum, Tata Motors is shifting from low-cost EVs to premium models that offer better technology, features, and range.
Harrier. ev
In June 2025, Tata launched the Harrier. ev—a fully electric version of its popular SUV. The vehicle is priced starting at ₹21.49 lakh and offers high-end features like:
All-wheel drive with dual motors
Up to 627 km range on a full charge
Fast charging: 0 to 80% in 25 minutes
Advanced driver-assistance systems (ADAS)
Large touchscreen and sunroof
Terrain driving modes for off-road capability
The launch of the Harrier. ev was supported by a powerful marketing campaign that highlighted its performance and rugged design.
Sierra.ev
Another upcoming model is the Sierra.ev, which is expected to be positioned as a stylish, high-end SUV targeting both families and fleet customers. It is part of Tata’s plan to offer more premium electric vehicles in the ₹20–30 lakh range.
By entering the premium EV space, Tata hopes to earn higher profits per vehicle and appeal to customers looking for better performance and comfort. Analysts believe these models can help Tata grow even if total market demand remains flat.
Investments in Charging and Batteries
To support the growth of EVs, Tata is not just building cars. It is also investing heavily in infrastructure and technology.
Charging Network
Tata recently launched its first set of high-speed charging stations called “MegaChargers” across major highways. The company plans to set up over 400,000 charging points across India by 2027. This is important because limited charging infrastructure has been one of the main reasons people hesitate to buy EVs.
Battery Manufacturing
Tata is also building its battery plant in India, with an investment of around $1.5 billion. Batteries are the most expensive part of an electric vehicle, and local production can reduce costs and improve supply. The factory is expected to start operations by 2026.
By making its batteries and chargers, Tata can reduce its dependence on imports, improve profit margins, and offer better service to customers.
Policy Support and Government Relations
Tata Motors is also working closely with the Indian government to shape EV policies. The company has been vocal in supporting full-electric vehicles over hybrid ones and has even lobbied against including hybrids in government fleet programs.
This strategy aligns with the Indian government’s goal of making the country a global hub for electric vehicles and green mobility. If government incentives and subsidies remain focused on EVs, Tata’s fully electric approach could benefit in the long run.
Financial Performance and Stock Movement
Despite strong long-term plans, Tata Motors faced a dip in overall vehicle sales in May 2025. The company sold 70,187 vehicles in total, which is a 9% drop from the same month last year. EV sales grew only slightly by 2%, while competitors like MG and Mahindra saw triple-digit growth.
The stock price of Tata Motors is currently around ₹706. Analysts from firms like Nomura and Kotak remain positive about the company’s EV plans, especially with the launch of premium vehicles like the Harrier.ev. Nomura has even given a target price of ₹799 for the stock.
However, the market remains cautious due to high competition and execution risks.
Challenges Ahead
While Tata’s strategy is bold and well-planned, several challenges could affect success:
Growing Competition: With MG, Mahindra, and even global brands planning to enter the Indian EV market, Tata can no longer assume market leadership.
Execution Risk: Scaling up production, setting up charging stations, and building a battery plant will require time, money, and coordination.
Consumer Hesitation: Premium EVs may be expensive for many buyers. If the overall cost (including charging and maintenance) is not attractive, customers may stick to petrol or hybrid cars.
Policy Changes: If the government starts supporting hybrid vehicles or reduces subsidies for EVs, Tata’s fully electric strategy could face setbacks.
Smart Bet or Risky Gamble
Tata Motors has shown a strong commitment to electric mobility. It’s new premium EVs like the Harrier.ev, massive investment in charging and batteries, and close work with policymakers make it one of the most serious EV players in India.
However, falling market share and rising competition are warning signs. The next 12–18 months will be critical. If Tata can deliver high-quality vehicles, expand infrastructure on time, and win customer trust, the strategy could pay off handsomely.
But if delays, pricing issues, or policy shifts occur, the aggressive strategy could backfire.
For now, Tata Motors stands at a crossroads. Its success in the EV market will depend on execution, innovation, and timing.
