Tata Motors PV bets on SUV, EV demand to drive ‘industry-beating’ growth in FY27 despite geopolitical risks

Passenger Vehicles said it expects to deliver “industry-beating” growth in FY27 and ramp up production to meet strong demand for SUVs, and , even as it warned that geopolitical developments, tariffs and commodity prices could create supply-chain and cost pressures.

The company said continues to remain resilient, led by sustained growth in SUVs, CNG vehicles and EVs, providing visibility for continued profitable growth in the current fiscal year.

“Looking ahead, domestic demand continues to sustain, led by growth in SUVs, CNG and EV. However, geopolitical developments remain a key monitorable to mitigate potential supply-side and commodity price risks. We will ramp up production to meet demand,” the company said in its earnings statement.

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‘Strong momentum’ drives H2FY26

said it expects to build on the “strong momentum” witnessed in the second half of FY26 through a planned pipeline of new products and its multi-powertrain strategy.

“We expect to build on the strong momentum of H2 and continue to deliver profitable and industry-beating growth in FY27, supported by a robust demand pipeline, planned pipeline of new products, and established multi-powertrain strategy,” it added.

The comments came after the automaker reported its highest-ever annual passenger vehicle sales of more than 640,000 units in FY26, with 15% year-on-year growth. The company also said it emerged as the No. 2 passenger vehicle player in the second half of the fiscal year.

In electric vehicles, Tata Motors said it retained its position, helped by efforts to strengthen the value proposition of its EV portfolio and address adoption barriers.

This helped the company post 43% year-on-year growth in EV sales, with annual EV volumes crossing 92,000 units for the first time.

Managing Director and CEO Shailesh Chandra described FY26 as a “landmark year” for the company, adding that the January-March quarter was particularly strong.

“Q4 FY26 was an outstanding quarter, in which we registered 37% year on year growth to record our highest ever quarterly sales of over 200,000 units,” Chandra said.

He added that Tata Motors delivered around 30,000 units of the Sierra during the quarter and launched new versions of the Punch and Punch.ev, which received “strong customer acclaim”.

“This consistent growth has helped us drive sequential margin improvement throughout the year,” Chandra said.

“Going ahead, we will continue to build on this strong momentum, deliver industry beating growth and enhance profitability through focused actions, while closely monitoring geopolitical developments to mitigate supply-side risks,” he added.

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Geopolitical, regulatory challenges

The company separately cautioned that “global geopolitical and regulatory challenges” would need to be monitored for supply-chain risks and cost headwinds.

It said it plans to mitigate margin pressures through structural cost reductions while continuing to leverage healthy domestic demand.

Dhiman Gupta, Chief Financial Officer at Tata Motors Passenger Vehicles, said FY26 was “a tale of two halves”, with domestic operations gaining momentum in the latter part of the year while faced headwinds from tariffs and a cyber incident.

“In Q4 FY26, all the consolidated financial metrics improved significantly as JLR operations recovered post the cyber incident and domestic business continued its positive trajectory,” Gupta said.

“Going ahead, we will continue to build on our resilience through a slew of product interventions, and cost-side actions, while the global geopolitical environment and commodity prices continue to remain key monitorable,” he added.