Sunday, April 26, 2026

Tata Motors sees 8-10% industry growth in 2026, eyes higher market share | Auto News

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Mumbai: Tata Motors expects the passenger vehicle market to remain on a growth path in 2026, backed by a stronger economy, improving consumer sentiment and continued benefits from recent GST reforms. In an interview with Lakshya Rana of Zee News, Vivek Shrivastava, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd., spoke about the company’s 2025 performance, EV strategy, service improvements and upcoming product plans.

Q: How do you look at Tata Motors’ performance in 2025?
A: It was clearly a year of two halves. The first half was tough for the entire industry. Demand was slow and dealer stocks were high. Heavy discounting was common. Things changed after August and September. GST 2.0 came at the right time, just ahead of the festive season. It created positivity across the market. Tata Motors benefited more because we have products across segments, including hatchbacks, entry cars, mid SUVs, big SUVs, petrol, diesel, CNG and EVs. In the October–December quarter, the industry grew around 20 percent, and we grew faster than that, gaining market share and reducing dealer inventory.

Q: Do you expect this momentum to continue in 2026?
A: Yes. The fundamentals of the economy remain strong. The GST benefits continue. The consumer mindset towards personal mobility is still positive. Growth may not be as sharp as the festive quarter, but we expect the market to grow around 8 to 10 percent this calendar year.

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Q: What are Tata Motors’ targets for 2026?
A: We have a good momentum. So, we want to grow faster than the market, which is expected to see 8-10% growth this year. While we cannot share exact numbers, the focus is clearly on gaining market share as the industry grows.

Q: How is Tata Motors improving service and touchpoints?
A: Our focus is more on service touchpoints expansion than sales outlets now. Tata Motors PV has one of the widest dealer networks in India, with 1600+ sales touchpoints and 1150+ service touchpoints across 1200+ cities. We have added 300+ new workshops over the last three years. We are expanding service bays, improving manpower training and increasing spare parts availability.

We’ve set up training centers across the country for technical manpower. Additionally, we have opened regional warehouses, improving spare parts availability and reducing turnaround time. We are also using AI and analytics to predict issues and stock parts better. Customer experience has improved on the ground, but service remains a long-term focus area.

Q: Tata’s EV market share has declined. Is that a concern?
A: At one point, we had over 70 percent EV market share, which is not sustainable.  That was monopolistic, too. Competition is healthy. Our goal is to maintain over 50 percent market share, and we are in that direction. In recent months, our share has come back close to 50 percent. In fact, we can go higher if we can supply more. Demand is strong, especially for newer EVs, like the Harrier electric.

Q: What’s next for Tata Motors’ EV lineup?
A: Sierra EV will arrive next financial year. Avinya is planned for the calendar year 2027. Timelines will be shared closer to launch.

Q: How important is Punch to Tata Motors?
A: Punch contributes about 22 percent of our total volumes and holds around 35 percent share in the sub-compact SUV segment. With the facelift, we expect volumes to grow further.

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