Tata Motors, currently the third-largest passenger vehicle seller in India, is setting ambitious goals for the future. The company ended fiscal year 2024 with a 14% market share, trailing only Maruti Suzuki and Hyundai. Now, it aims to boost that figure to between 18% and 20% by 2030. At the Investors Day 2024 meet, Tata Motors unveiled its five-year road map, which includes several strategic moves to achieve this growth. The company plans to introduce new models, expanding its lineup to cover 80% of the market-up from the current 53%.
Expanding the Product Lineup
Key to this strategy are the upcoming launches of the Sierra EV, Harrier EV, and Curvv. These new models will help Tata Motors enter segments where it previously had no presence. Additionally, Tata plans to introduce new powertrains for existing products, further broadening its appeal.
Financial Health and Profitability
Tata Motors also shared positive news on the financial front. The Indian operations are now net debt free, and Jaguar Land Rover (JLR) is expected to achieve the same status by FY25. The company aims to increase its profit margins on passenger cars by 2%, boosting overall profitability.
Strategic Business Moves
In response to substantial growth in both its commercial and passenger vehicle operations, Tata Motors announced a demerger of these two divisions. Despite this separation, the PV, EV, and JLR units will continue to collaborate on critical areas like battery development, autonomous technology, and vehicle software.
Leading in the EV Market
In FY24, Tata Motors not only maintained its position as the third-largest passenger vehicle seller but also dominated the Indian EV market. With a market share of 73%, Tata sold over 150,000 EVs last year. The company plans to build on this success, aiming for EVs to account for 30% of its total sales by 2030.
Vigilant Competitor
Tata Motors plans to keep a close eye on its competitors as it moves forward with its growth plans. By expanding its product lineup, improving financial health, and leading in the EV market, Tata Motors is poised to significantly increase its market share over the next decade.