Tata Motors, the long-standing leader in India’s passenger electric vehicle (EV) market, is beginning to lose ground as competition intensifies. According to Vahan data, Tata’s retail market share in the EV segment dropped to 38% in the first half of 2025 (January–June), down sharply from 67% during the same period last year.This dip in market share is coupled with a decline in sales volume.
Tata Motors sold 28,439 electric vehicles between January and June, compared to 32,715 units during the same period in 2024. Meanwhile, the overall passenger EV market has grown significantly — up 50% year-on-year to 74,453 units from 48,877.
Tata’s early lead in the EV segment, once seen as unassailable, is now under pressure as new entrants launch compelling alternatives. The company’s market share has steadily declined—from 95% in February 2022 to just 36% in June 2025. Competitors like MG Motor and Mahindra & Mahindra have made steady inroads, offering new models at competitive price points.MG Motor has seen the sharpest rise, growing its market share from under 1% in February 2020 to 30% by June 2025 — driven largely by the success of its Windsor EV.
Mahindra has also gained momentum, capturing 22% of the market in June on the back of the XEV 9e and BE6 models. The upcoming launches from Maruti Suzuki and Hyundai are expected to further heat up the race.Despite the mounting pressure, Tata Motors remains optimistic. On the company’s Q4 FY25 investor call, Shailesh Chandra, managing director of Tata Passenger Electric Mobility, described the recent slump as “short-term pressure” resulting from a wave of new product launches by rivals. He expressed confidence that Tata would soon reclaim “market share above 50% plus” in the EV segment.
Chandra noted that Tata continues to dominate the sub-Rs 12 lakh EV category, with models like the Tiago and Punch helping the company retain over 75% share in that segment. He added that Tata is focused on achieving price parity with internal combustion engine (ICE) vehicles while simultaneously improving driving range. In the Rs 12–20 lakh mid-segment—which is expected to be the highest-volume bracket—Tata Motors aims to grow further. For the premium segment, Chandra highlighted the role of the Harrier EV and the upcoming Sierra EV.
Chandra also attributed the slowdown in demand to multiple factors, including the discontinuation of certain platforms, reduced fleet orders, and the conclusion of the FAME II subsidy scheme.The company is now focused on building a total cost of ownership (TCO) advantage over CNG-powered vehicles to regain traction in the fleet market.
Tata Motors currently offers six electric models, priced between Rs 7.99 lakh and Rs 30.23 lakh. These include the Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, Curvv.ev, and Harrier.ev. MG Motor and Mahindra each offer three EVs, with pricing that directly challenges Tata Motors portfolio.
Unlike Tata Motors, MG and Mahindra derive most of their EV sales from models priced above Rs 14 lakh. MG’s Windsor EV starts at Rs 14 lakh, while Mahindra’s BE6 and XEV 9e start at Rs 18.90 lakh and Rs 21.90 lakh, respectively.
Industry analysts believe the launch of the Harrier.ev could support Tata Motors position in the premium segment.