Tata Motors Sees Cheaper EV Tech Fueling India’s Next Wave of Electric Car Adoption

India’s electric vehicle market is moving into a high-growth phase, driven by competitive new entrants and sharply falling technology costs, according to Tata Motors Passenger Vehicles Ltd. Managing Director Shailesh Chandra.

Electric vehicles now make up just over 5% of India’s new passenger vehicle sales — double the share seen a year ago. Chandra told Bloomberg that Tata Motors, currently India’s largest EV maker, expects nearly one-third of its total sales to come from battery-powered models by the end of the decade, reaffirming a target the company outlined earlier.

With China and Europe seeing demand plateau, India has emerged as one of the few hotbeds of EV expansion. That momentum is attracting global automakers eager to tap into the world’s fastest-growing major auto market. Tesla’s proposed entry, along with Vietnam-based VinFast and a mix of Chinese and Indian rivals, is expected to accelerate the shift by widening consumer choice and speeding up price reductions.

Tata Motors — which also owns Jaguar Land Rover — sits uniquely positioned with products ranging from budget-friendly EVs to high-end electric SUVs. But increased competition is starting to reshape the market. As per a BloombergNEF report dated Oct. 3, Tata’s EV share dropped to 35% in the first eight months of this year, down from 59% a year earlier. JSW MG Motor India expanded to 30%, while Mahindra & Mahindra captured 22.6% as of August.

Chandra sees this intensifying rivalry as a positive development. “Competitive products from multiple brands build confidence in the category,” he said at the launch of the new Tata Sierra SUV on Tuesday.

The executive said that EVs will become more affordable as automakers consolidate power electronics and other components that were once built as separate modules. Integrating these systems — beyond just reducing battery costs — is helping simplify manufacturing and improve efficiency.

“What earlier required several independent units is now being consolidated into compact modules,” Chandra said. “That shift is pulling down overall vehicle costs.”

Chandra expects a major tipping point by 2030, when entry-level EVs should cost about the same as petrol models and deliver close to 400 km of driving range. Today, most mass-market EVs still cost 25%–30% more while offering sub-300 km range.

EV growth in India will, however, face resistance from hybrid technologies, which offer a practical middle path for consumers concerned about charging access. Carmakers like Hyundai and Kia are preparing hybrid models for the Indian market. Recent tax reductions on petrol cars also make combustion vehicles more appealing in the short term.

Still, BloombergNEF expects India’s EV sales to keep climbing as more models enter the market and battery prices continue to fall, projecting demand could cross 650,000 units by 2030.

Tata Motors plans to strengthen its leadership by expanding its electric lineup across segments. The company aims to raise its market share to as much as 50%. The newly unveiled Tata Sierra — a modern take on the 1990s classic SUV — will be offered as a “premium mid-SUV,” with an electric version scheduled for release early next year, reflecting Tata’s push to electrify both mainstream and premium categories. (With inputs from Bloomberg)