Tata Motors Passenger Vehicles is preparing to significantly increase its electric vehicle supplies to nearly 20,000 units per month over the next two to three months, as demand for electric cars continues to rise across India. The company is currently facing supply constraints and is unable to fulfil the entire demand for its electric vehicle portfolio, despite operating its manufacturing facilities at full capacity.
According to Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles, the company has already increased its monthly EV supplies from approximately 9,000 units during March-April to nearly 16,000 units at present. The next target is to reach around 20,000 units per month as component suppliers expand their production capabilities.
Speaking during the company’s Q2 FY27 earnings call, Chandra highlighted that Tata Motors is currently meeting only around 60-65% of the total demand for its electric vehicles. The growing gap between customer demand and available supply has resulted in limited vehicle availability and longer waiting periods for certain models.
Tata Motors Records 90% Growth in EV Sales
Tata Motors reported a strong performance in its electric passenger vehicle business during the second quarter of FY27. The company recorded more than 47,000 EV sales during the quarter, registering approximately 90% year-on-year growth.
The strong performance reflects increasing consumer interest in electric mobility, supported by expanding product choices, improving awareness and the growing appeal of lower running costs compared with conventional petrol and diesel vehicles.
However, the company continues to face challenges in meeting the growing demand. EV dealer inventory currently stands at approximately 10 days, indicating relatively limited stock availability across its retail network.
The Tata Punch emerged as the company’s highest-selling model during the quarter, highlighting the growing popularity of electric SUVs and compact electric vehicles among Indian consumers.
Supplier Expansion to Support Higher EV Production
To increase electric vehicle supplies, Tata Motors is focusing on strengthening its supply chain and working closely with component manufacturers. Although the company has flexible manufacturing facilities that allow production capacity to be adjusted between internal combustion engine (ICE) vehicles and electric vehicles, increasing component availability remains essential.
The company is coordinating with suppliers to improve production volumes and ensure that critical components are available to support higher EV manufacturing targets.
Tata Motors expects these supply-side improvements to help it move closer to fulfilling customer demand over the next two to three months.
Alternative Powertrains Gain Momentum in India
The increasing demand for electric vehicles is part of a broader shift towards alternative powertrains in India’s passenger vehicle market. During Q2 FY27, electric vehicles accounted for approximately 8% of industry passenger vehicle sales, while CNG vehicles contributed around 25%.
Tata Motors also reported that the combined contribution of alternative powertrains, including EVs and CNG vehicles, crossed 50% of its passenger vehicle sales during the September quarter.
This changing preference indicates that Indian consumers are increasingly exploring alternatives to traditional petrol-powered vehicles.
Strong EV Demand Signals Growth Opportunities
Tata Motors expects the Indian passenger vehicle industry to grow by approximately 12-13% during FY27, although growth could moderate in the second half because of a higher comparison base.
For the electric vehicle industry, improving production capacity and component availability will remain important factors in sustaining momentum.
The company’s plan to increase monthly EV supplies to 20,000 units represents a significant step towards addressing the growing demand for electric cars in India. With EV sales increasing rapidly and manufacturers expanding their production capabilities, Tata Motors is positioning itself to strengthen its presence in India’s evolving electric passenger vehicle market.
