Automobile Desk: Indian automobile giant Tata Motors is working rapidly on a huge expansion plan in its passenger vehicle (PV) segment. The company has set a target of manufacturing 1,00000 vehicles every month from the financial year 2028 (FY28). At present the average monthly production of the company is around 75,000 units. To achieve this target, Tata Motors has also instructed its supplier partner network to increase their manufacturing capacity.
The main reason behind this big step of the company is the increasing demand for Tata cars in the Indian market. If we look at the data of the last few months, the current demand for Tata Motors vehicles is about 7,000 to 8,000 units per month more than its current production capacity. The company is currently facing some challenges in capitalizing on the full market demand due to limited capacity from suppliers. The company has sold an average of 65,000 vehicles every month during the first half of the current financial year (H1 FY27). In such a situation, the new target of 1 lakh units per month represents an increase of more than 50 percent from the current average sales.
To achieve this big target, Tata Motors has also prepared a strong financial roadmap. The company will make a huge investment of around Rs 37,500 crore to Rs 40,000 crore in its passenger vehicle business between financial years 2027 to 2031. The main purpose of this huge capital infusion is to modernize production lines, adopt new technologies and strengthen the supplier chain. Tata's long-term vision is to increase its share in the Indian passenger vehicle market to 20 percent by financial year 2031, under which the company is working on a strategy to sell more than 12 lakh vehicles annually. If everything goes as per plan, by FY31 the monthly production capacity of Tata Motors can touch the figure of 1.3 lakh units.
Along with increasing production, Tata Motors is going to completely revamp its product portfolio. The company is preparing to launch the next-generation model of its popular SUV Nexon in the market in the year 2027. Soon after this, the much awaited 'Avinya' electric series vehicles will also hit the market. By FY31, Tata is going to add 6 brand new models to its lineup, taking the total number of vehicles in its portfolio to 15.
The size of the Indian passenger vehicle industry is estimated to increase from 47 lakh units by FY 2026 to 64 lakh units by FY 2031. To capitalize on this rapidly growing market, Tata is constantly reviewing its manufacturing capacity, so that future demand can be met without any delay.