Tata Motors expects electric PV sales to bounce back strongly in FY26

Tata Motors expects its electric passenger vehicle sales to bounce back strongly this fiscal on the back of new models and product interventions after witnessing about 10 per cent decline in sales in FY25, its group CFO PB Balaji said on Tuesday. The company is lining up to launch Harrier.ev this fiscal and Sierra.ev subsequently, besides multiple interventions on existing cars to boost EV sales, he said in an earnings call.

"We sold about 65,000 units (of EVs) this year (FY25), which was about 10 per cent lower than what we sold last year (FY24)," Balaji said, adding that the decline in the company's EV sales were mainly due to a drop in fleet sales on account of withdrawal of FAME II subsidy and some of the fleet operators also getting into a few challenges.

He said fleet sales as a portion of total EVs sold have come down, and Tata Motors is working on how to reverse it.

He further said, "We are getting the momentum back in terms of numbers, and we hope to do pretty strongly in the coming year, and the product pipelines are accordingly positioned. The product formats are accordingly positioned, and we hope to start FY26 on a strong note".

At the same time, he said, "We have a series of interventions planned with respect to the Harrier.ev launch and the Sierra.ev launch subsequently. There are multiple interventions happening on the existing cars as well. So, we have a significant set of actions that have been lined up".

On increasing competition in the Indian EV market, Balaji said, "With more and more competition coming in, the EVs are slowly becoming a conversation that people would want to engage in. The fact that we continue to be the largest player in the EV market is also testimony to the fact that the products are doing well".

With the new launches also coming in, an increase in the charging network to almost 21,000 fast chargers that have been put into place, he said, "We believe we are on the right track with respect to continuing to drive leadership in this particular segment".

Asked about Tata Motors' overall capex for FY26, he said it will be very similar to FY25 with no major change. In FY25, the group's capex was around Rs 8,400 crore for Tata Motors and 3.8 billion pounds in JLR.

Balaji said in FY25, Tata Motors group did the highest investment ever of almost Rs 48,000 crore and also clocked record revenues, "landing at almost Rs 4.4 lakh crore".