Tata Motors aims to drive brand aspirations, leverage marketing tech for long-term growth

Automaker giant Tata Motors has unveiled an extensive plan to boost car sales and enhance brand equity for long-term growth.

In the fiscal year 2026 outlook report, Tata Motors mentioned that it would focus on new passenger vehicles brand positioning, drive engagement through touch & feel marketing, and leverage new-age technologies to drive customer acquisition.

According to the car manufacturers, Tata Motors has eyed 10% EBITDA for the consolidated PV and EV (Electric vehicle) business by FY2030, driven by a transition towards software-defined vehicles.

Tata Motors has planned to include advanced features, including ADAS, high levels of in-car personalization, and seamless connectivity with phones among others.

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The company said it will strengthen its portfolio with 7 new nameplates and 23 products by fiscal year 2030. And for EVs, the automaker will focus on driving confidence and awareness in Tier 2 and 3 cities. Besides, boosting the charging network is also on the cards.

India's passenger vehicle and EV industry is expected to grow to 6 million by 2030 due to rapid growth in high-consumption households and faster replacement cycles of new cars to 4 years. However, short-term fluctuations and secular growth will persist.

Notably, Tata Motors has exuded confidence in sales of SUVs and multi-purpose vehicles (MPV). In contrast, the automaker found less potential in hatchback sales because of the higher entry price and fewer new nameplate launches.

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Tata Motors's SUV sales grew by 11% in FY25 while Hatch's sales witnessed a 13% drop in the same period.

The automaker has expected that the PV Volume growth during the financial year 2026-2030 period will be well ahead of the industry. The company has envisaged a 16% market share for PVs by FY2027.

In addition to this, the automaker has projected penetration of electric vehicles to be 20% by FY27. However, the company has warned that free cash flow will remain negative in the medium term, even though the EV business is well-funded for the next three years.