Tata Motors PV Targets Industry-Leading Growth in FY27

Tata Motors Passenger Vehicles expects to outgrow the industry in FY27, Chairman N Chandrasekaran said at the company's annual general meeting. The confidence rests on a pipeline of new models and a powertrain strategy that spans internal combustion, electric, and compressed natural gas options.

The passenger vehicle unit will keep working with Jaguar Land Rover on shared manufacturing and technology, Chandrasekaran said. He cited safety, sustainability, quality, and customer satisfaction as the four pillars of the strategy.

Tata Motors is targeting Net Zero emissions by 2040, the chairman said. The company did not provide a specific volume target for FY27 or break down the expected contribution from each powertrain type.

The passenger vehicle business has gained market share in recent years, helped by a strong SUV lineup and early entry into the electric segment. Rivals Mahindra & Mahindra and Maruti Suzuki have also stepped up EV launches, narrowing Tata's lead in that category.

Chandrasekaran's growth forecast comes as the broader Indian auto industry faces headwinds from high base effects and a patchy monsoon that could dampen rural demand. Passenger vehicle sales grew roughly 5% in the fiscal year ended March 2025, slowing from double-digit growth in the prior two years.

Tata Motors shares closed 0.8% lower on the day of the AGM, in line with a weak broader market. The stock has gained about 12% over the past 12 months, underperforming the Nifty Auto index.