Automobile Desk: Excitement regarding the upcoming festive season has started increasing in the Indian automobile market. The country's leading car manufacturer Tata Motors expects that the demand for its electric vehicles (EVs) will remain much higher than the supply in this festive season. Compared to the month of February this year, there has been a huge increase of about three and a half times in the demand for the company's electric vehicles. This level of demand remains even after the arrival of new options in the market, meeting which is a main challenge for the company at present.
In view of this increasing demand, Tata Motors has significantly increased its manufacturing capacity. The company has increased its monthly production from 9,000 units to over 15,000 units and plans to expand further in the coming months. The first quarter (Q1) of the financial year 2026-27 was quite successful for Tata's electric segment, with record sales of over 34,000 EVs. The contribution of electric vehicles in the company's total vehicle sales has now reached almost 20 percent. Tata Motors aims to achieve more than 70 per cent growth in annual sales of its EV portfolio and maintain more than 40 per cent share in the segment.
Along with increasing production, the company is also facing the challenge of cost management due to rising prices of raw materials (commodity). In the first quarter of the current financial year, the impact of commodity prices on revenue has been seen to be about 4.5 percent. Due to this, the consolidated net profit of the company declined to Rs 775 crore in the quarter ending June 2026, which was Rs 3,924 crore in the same period last year. However, the company has clarified that the entire burden of this increased cost will not be passed directly on the customers. Efforts are being made to control costs and minor changes in prices will be made gradually only on need basis.
There is tremendous enthusiasm among Indian customers regarding the new models of Tata Motors. Especially the Sierra model and its new EV avatar is receiving a very positive response from the market. However, production has been partially impacted due to some technical disruptions in the supply chain of sheet-metal and casting parts. The company hopes that this problem will be solved to a great extent after the new capacities are launched by October. On the other hand, during the festive season, a growth of 15 to 20 percent is being predicted in the domestic passenger vehicle market, in which along with EVs, CNG vehicles will also play a big role.
Along with maintaining its strong position in the domestic market, Tata Motors is also rapidly expanding its network internationally. The demand for the company's vehicles is continuously increasing in the South African market. In the current financial year, between April and July 2026, the company exported 2,432 units, which is more than double compared to the same period last year (1,035 units). Under the global vision, Tata plans to enter a new major international market by the end of financial year 2027 or the beginning of the next financial year. In the future, if the trend of the Indian auto market also leans towards hybrid technology, then the company is fully prepared to immediately change its strategy.
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