Tata Motors’ passenger vehicle business is expecting improved profitability in the fourth quarter, supported by higher sales volumes, a better product mix, and continued cost management initiatives. The company has reaffirmed its investment plan of INR 4,200–4,300 crore for the year and is preparing for key electric vehicle launches, including the Punch EV and Sierra EV, alongside updates to existing models.
The domestic passenger car business anticipates a stronger Q4 performance, with profitability gains driven by operational efficiencies. Higher volumes and an improved mix of products are expected to contribute positively to margins, while ongoing cost-control measures are set to enhance overall financial performance. Tata Motors has projected Q4 growth in the range of 13–14 percent.
Alongside near-term profitability improvements, Tata Motors continues to pursue an aggressive investment strategy. The company has committed INR 4,200–4,300 crore toward its passenger vehicle operations this year, reflecting its focus on capacity, product development, and future readiness. In the near term, Tata Motors expects overall growth of around 40 percent.
Looking ahead to FY26, Tata Motors has indicated that while the broader industry is expected to grow by 8–9 percent, the company aims to outperform the market with mid-teen growth in its passenger vehicle business.
A key pillar of this growth strategy is the expansion of Tata Motors’ electric vehicle portfolio. The planned launches of the Punch EV and Sierra EV represent major additions to the company’s EV lineup. In parallel, updates to existing models are expected to strengthen the current product range and support sustained growth in the passenger vehicle segment.
