Tata Motors Passenger Vehicles expects India’s passenger vehicle industry to grow around 10% in FY27 despite geopolitical tensions and fuel price risks linked to the West Asia crisis, according to Managing Director and CEO Shailesh Chandra.
“I am very confident that industry growth can still be around 10% in FY27. It may move 1-2 percentage points either way if there is a significant impact from geopolitical tensions, fuel prices or any other factor. But the industry seems to be on track for around 10% growth,” Chandra said during the company’s post-earnings media call.
Chandra said demand in April and May remained strong despite geopolitical tensions, while Tata Motors would target “industry-beating growth” through new launches, capacity ramp-up and its SUV, EV and CNG portfolio. He added that the company would continue with planned investments despite global uncertainties.
“There is no question of changing the long-term product plan. We remain optimistic. There is also no question of stopping or postponing any of our capex on products,” he said.
Product Offensive
Additionally, Tata Motors has also confirmed plans to launch at least two new nameplates and four facelifts in India during 2026. The company said the much-awaited Tata Sierra EV will be launched in the next quarter. The SUV is expected to feature a triple-screen dashboard layout, ADAS features and EV-specific styling updates.
Tata Motors is also preparing the launch of the Tata Avinya range, which will use technology derived from JLR’s Electrified Modular Architecture platform. The first Avinya SUV, previewed by the Avinya X concept, is expected before the end of the year, according to sources.
The automaker has already launched updated versions of the Tata Punch and Punch EV this year, while updates for the Tiago and Tiago EV are also planned to launch before the end of 2026.
Supply Constraints
“As far as Tata Motors is considered this year is going to be more of a supply challenge for us than demand. Demand is significantly high for us, and therefore the effort is to ramp up and enhance capacities at both our end and our suppliers’ end,” Chandra said.
He added that most Tata models currently have waiting periods of 4-8 weeks, while some EVs and Sierra variants face longer delivery timelines due to supply chain constraints.
Tata Motors also said it plans to launch its first flex-fuel passenger vehicle by the end of this calendar year or early next year as India prepares regulations for higher ethanol-blended fuels.
“As far as we are concerned, we are very comfortable in terms of technology readiness. By the end of this year or early next year, we should be ready with our flex-fuel (product) also, at least one product,” Chandra said. The company had showcased a flex-fuel version of the Punch at Auto Expo 2025. Tata Motors said all its vehicles have been E20 compliant since 2023.
In FY26, Tata Motors’ passenger vehicle mix comprised 46% petrol, 13% diesel, 14% EV and 27% CNG vehicles. EV volumes rose 43% year-on-year to 92,200 units, while CNG volumes crossed 1.7 lakh units during the year.