According to a presentation released to investors on its website, Tata Motors, the leading EV brand in India, plans to increase Capex in its EV business, aiming to launch mid-to-low-end products to achieve the penetration of EVs in its portfolio to about 30%.
Tata Motors said it has a 73% share in India's EV market and has achieved the milestone of 150,000 EV sales. The company plans to increase the penetration of EVs in its portfolio to about 30% by fiscal 2030 (April 2029 to March 2030) and will continue efforts to develop and mainstream the EV market.
Tata Motors aims to achieve EBITDA breakeven for its EV business by fiscal 2026. The automaker is targeting 10% EBITDA and positive free cash flow for its consolidated passenger and electric vehicles business by fiscal 2030.
Tata Motors plans to expand its EV portfolio to include ten models by fiscal 2026 and will continue to focus on mainstreaming EVs in India.
The company also stated that its UK unit, Jaguar Land Rover, is on track to become net debt-free by fiscal 2025. In addition, Tata Motors' India business achieved net debt-free status in fiscal 2024, and all its businesses are now self-sustaining with well-funded investment plans.
Tata Motors plans to invest between INR160-180 billion (US$1.91-2.15 billion) into its EV division by fiscal 2030. According to Business Standard, Tata Motors plans to increase the number of EV dealerships to 50 cities within the next two years, making EVs more accessible to consumers nationwide.
In addition, Tata Motors is collaborating with private charge point operators to bolster the country's charging infrastructure. Through partnerships with companies like ChargeZone, Glida, and Static, Tata Motors plans to increase the number of public charging points to around 100,000 by fiscal 2030.
Meanwhile, Tata Motors aims to achieve a 20% share in the passenger vehicle (PV) market by fiscal 2030. According to data from the Society of Indian Automobile Manufacturers, in fiscal 2024, the company held a 13.81% share in the Indian PV market by volume.
Tata Motors business aims | |||
Area | Commercial Vehicle | Passenger Vehicle | Electric Vehicle |
Market shares /Growth | Gradually increasing shares; Market beating revenue growth | Volume growth well ahead of market 16% market share by FY27 18-20% in another 2-3 years | Continued leadership Penetration of EV – 30%+ by FY30 |
EBITDA | Strong double-digit EBITDA | Double Digit EBITDA | Breakeven EBITDA (FY26) |
Capex | 2-4% of Revenue | ~6-8% Revenue | As necessary (INR160-180 billion for FY25- FY30) |
Cash/Returns | FCF 6%-8% of revenue, Strong ROCE Reduced volatility | Positive & growing cash flows | Near term – Negative (funded); Med term – Neutral |
Source: Tata Motors, June 2024
