Tata Motors says demand for its electric vehicles is running about 30 per cent ahead of supply, highlighting strong momentum in India’s EV market as it moves beyond early adopters into the mainstream. The company is counting on the newly launched Sierra EV, priced from ₹18.79 lakh, to capture demand in the fast-growing mid-size SUV segment and drive the next phase of EV adoption.
Speaking at the Sierra EV launch in Mumbai, Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles Ltd. (TMPVL), said shortages of critical, high lead-time casting components have constrained EV production, particularly for the Harrier EV. While supply and demand remain largely balanced for internal combustion engine vehicles, the gap is significantly wider in the EV business. To manage shortages, Tata Motors is following a “fair allocation” strategy across its EV portfolio rather than prioritising any single model.
The company has already increased Harrier EV production by about 40 per cent and expects supply conditions to improve over the next six months. Supplier-capacity expansions are planned over the next one to three years.
Tata sees the 4.3-metre mid-size SUV segment as its next strategic battleground. Accounting for 17-18 per cent of India’s passenger vehicle market, or around 75,000 units a month, the category includes popular models such as the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara and Mahindra Scorpio. The Sierra EV is expected to play a key role in expanding Tata’s presence in this high-volume segment.
Backed by a planned investment of ₹37,500-40,000 crore between FY27 and FY31, Tata Motors aims to raise annual passenger vehicle capacity from about 900,000 units to 1.3 million units and achieve sales of more than 1.2 million vehicles a year by FY31. A major part of the plan includes adding 300,000 units of annual capacity at its Sanand plant.
Chandra said India’s EV market is now supported by four demand pools –entry-level cars, compact SUVs, mid-size SUVs and premium SUVs. The market is on track to exceed three lakh annual passenger EV sales, with penetration expected to cross 10 per cent of total passenger vehicle sales by FY28.