Tata Motors Unveils Investment Plan, Sets Sights On EV Growth And Demerger

Tata Motors plans to invest ₹330–350 billion from 2025-2026 to 2029-30 on product innovation, new powertrains, and advanced technologies, the company said in an investor presentation on Monday.

The automaker is targeting ₹10 billion in free cash flow and double-digit EBITDA margins, though it expects negative free cash flow in its EV business. Tata Motors aims to maintain strong funding for the next three years, despite muted demand expectations for FY26.

The company will launch the Sierra SUV in the second half of 2025-26 and introduce one electric model per price point and range segment. It also plans to expand the EV ecosystem via strategic tie-ups and charging infrastructure. Tata Motors will leverage production-linked incentives for its Nexon and Harrier models during 2025-26.

Despite a 4% drop in overall domestic sales to 912,155 units in 2024-25, the company is targeting a 16% market share by 2026-27, including EVs, and 18–20% over the following two–three years. It also sees EV penetration rising to 20% by 2026-27 and 30% by 2029-30.

The company confirmed plans to list its commercial vehicle unit by December 2025 as part of a demerger announced last March. Tata Motors will split into two entities—Tata Motors Passenger Vehicle Ltd. and a new listed commercial vehicle company that will retain the Tata Motors Ltd. name. The asset split between the two units is expected at 60:40, with common assets and liabilities shared in the same ratio.