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Tata Motors has announced plans to increase its passenger vehicle production capacity by 300,000 units per year over the coming years through a brownfield expansion. With this addition, the company’s total capacity is expected to rise from 850,000 units to over 1 million units.
According to Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Passenger Electric Mobility, the expansion will primarily take place at the company’s Sanand plant in Gujarat, where it already operates two manufacturing facilities. The automaker also has a production plant in Pune.
The expansion is aligned with Tata Motors’ aggressive product rollout strategy across both internal combustion engine (ICE) and electric vehicle (EV) segments. The company recently launched the Tiago EV facelift and plans to introduce two new nameplates along with four facelifts this year.
In the previous financial year, Tata Motors introduced several new models, including the Sierra, petrol variants of the Harrier and Safari, the updated Punch, and EV models such as Harrier.ev and Punch.ev. The company expects these launches to significantly influence demand this year.
Amid rising EV demand and fluctuating fuel prices, Tata Motors is also ramping up electric vehicle production from around 10,000 units per month to 15,000 units within the next three to four months. Additionally, the company has commenced production at its new Ranipet facility in Tamil Nadu, which is expected to reach an annual capacity of 250,000 vehicles in phases.
The automaker plans to invest ₹4,000–5,000 crore annually over the coming years to support its expansion strategy. In FY26, Tata Motors sold 651,000 passenger vehicles domestically and exported 10,350 units, with total production reaching 661,000 units.
The company faces strong competition in the ICE segment from Maruti Suzuki, Hyundai, and Mahindra & Mahindra, while the EV space is becoming increasingly competitive with players such as JSW MG Motor and Mahindra expanding their presence.
