India's Tata Motors PV aims to nearly double revenue, volume by 2031 (updated)

Tata Motors Passenger Vehicles

23/06/2026 10:32

Adds details and background throughout

    June 23 (Reuters) - India's Tata Motors Passenger Vehicles TAMO.NS said on Tuesday it aims to nearly double its revenue and sales volumes by fiscal 2031, banking on electric and gas-powered vehicles, as it seeks to capture a 20% share of the world's third-largest car market.

    The company expects its revenue to exceed 6 trillion rupees ($63.32 billion) by FY 2031, up from 3.36 trillion rupees in FY 2026, it said in an investor presentation. It also expects its sales volumes to rise to over 1.2 million units from 640,000. 
Last month, Tata Motors warned that rising commodity costs, exacerbated by the Iran war, would pressure margins, prompting cost cutting and a focus on more profitable high-end vehicles.    
Electric models make up 14% of Tata's total sales, but rivals Mahindra & Mahindra MAHM.NS and JSW MG Motor are closing in on its lead, exposing gaps in its EV line-up and raising the risk of further market share losses.


    ROAD TO FISCAL 2031
  

Tata Motors said the sector witnessed a sharp, broad-based recovery in the second half of fiscal 2026 as a result of India's tax reforms. 
The automaker recently outlined plans to invest 330 billion to 350 billion rupees in its passenger and EV businesses between FY26 and FY30.
However, its shares slid by as much as 10% last week after unit Jaguar Land Rover unveiled a plan to rebuild profitability and cut costs that fell short of investor expectations. The British carmaker contributes about 80% of Tata's revenue.
A "significant" proportion of the company's FY31 volume target will come from electric and gas-powered vehicles, it said in the investor presentation, as it expands its presence in the segments with new models and upgrades.
The Indian automaker also aims to raise production capacity to 1.3 million units within two to three years from 900,000 annually, while targeting a 10% EBIT margin, it said on Tuesday. 

($1 = 94.7525 Indian rupees)

 (Reporting by Urvi Dugar in Bengaluru; Writing by Abinaya V; Editing by Shreya Biswas)
 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))