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Tata Motors Passenger Vehicles electric vehicle penetration has increased to around 25% this year, according to Managing Director Shailesh Chandra. The company’s EV demand is currently nearly three times higher than its available supply capacity, while EV penetration stood at around 14% last year.
Tata Motors recorded a new monthly EV sales high in August, selling 16,549 electric vehicles. From January to August 2026, the company sold 93,164 EVs, surpassing its total EV sales of 81,125 units in 2025.
According to Chandra, EV penetration based on bookings could have crossed 30% if the company had sufficient production capacity. He said the key constraint at present is not demand but the ability to supply vehicles.
Tata Motors has significantly increased its monthly EV production capacity. From an average of around 7,500-8,000 units per month last year, capacity has now crossed 16,000 units per month. The company is working to increase production capacity further each month.
The supply constraint is mainly linked to the time required for suppliers to expand their production capacity. While Tata Motors can shift manufacturing capacity between different models, changes across the supply chain require suppliers to receive production schedules well in advance.
Chandra said higher fuel prices resulting from geopolitical uncertainty have also encouraged some consumers to shift towards EVs. However, he noted that the transition to electric vehicles is now becoming a broader shift rather than being driven only by fuel prices.
At the overall industry level, EV penetration has increased to around 8% from 4.5% earlier. Chandra expects industry EV penetration to enter double-digit levels in the next financial year.
Demand for Tata Motors EVs is being supported by new model launches, improved driving range, faster charging and growing confidence in charging infrastructure and EV technology.
Tata Motors currently has seven EV models in the mainstream passenger vehicle segment. These include the Tiago EV, Nexon EV, Punch EV, Harrier EV, Curvv EV, Tigor EV/Xpres-T for fleet customers, and the recently launched Sierra EV.
