Tata eyes upmarket push

TATA Motors is preparing a major passenger vehicle expansion that will see it move further upmarket, accelerate its electric vehicle rollout, and sharpen its focus on product quality and aftersales support.

The Indian manufacturer, whose cars and utes were last officially sold in Australia in 2019, is targeting a near doubling of passenger vehicle volume by FY2031 as it seeks to grow beyond its value-led roots.

Tata Motors Passenger Vehicles says it wants to lift annual sales from around 640,000 units in FY2026 to more than 1.2 million units by FY2031, while increasing revenue to more than Rs 6 lakh crore ($A107b).

The plan includes four new electric vehicles and more than 10 model refreshes by FY2031, including the return of the Sierra nameplate as an EV and models based on the Avinya concept family.

Tata says EVs are expected to account for more than 30 per cent of its passenger vehicle sales by FY2031, supported by improved battery range, faster charging, deeper localisation, and reduced battery costs.

The company is also shifting its product focus toward higher-value models as competition intensifies in India’s lower-cost passenger car segments.

Models such as the Harrier, Safari, Curvv, and forthcoming Sierra are expected to play a greater role in Tata’s sales mix, reflecting stronger demand for feature-rich SUVs and electrified drivetrains in India’s fast-growing middle- and upper-middle markets.

Tata Motors Passenger Vehicles managing director and chief executive Shailesh Chandra said the company’s next phase of growth would require stronger product quality, software validation, and customer support.

“We have to prepare the system proactively rather than reactively,” he said.

The company plans to use artificial intelligence (AI), digital engineering, predictive diagnostics, and total quality management to improve reliability and aftersales outcomes, an area where Tata has faced criticism in the past.

The renewed quality push follows several years of rapid expansion for Tata’s passenger vehicle business, which has benefited from strong SUV demand and early leadership in India’s EV market.

However, competition is rising from Mahindra, JSW MG Motor India, and Hyundai, while changing emissions rules and reduced EV subsidies are expected to place greater pressure on manufacturers to deliver scale and profitability without relying on government support.

Separately, Tata Motors’ commercial vehicle business is pursuing a much larger global footprint through its proposed acquisition of Italian truck and bus maker Iveco.

The €3.8 billion ($A6.7b) deal, first announced in 2025, would create a combined commercial vehicle business with annual sales of more than 540,000 units and revenue of around €22 billion ($A39b).

For Tata, the Iveco deal would provide stronger access to Europe, advanced truck and bus technology, and a wider global manufacturing and distribution base.

Tata vehicles were last officially sold in Australia under independent distributor Fusion Automotive, which offered the Xenon light-commercial ute between 2013 and 2019.

Before that, a small number of Tata Telcoline pick-ups were imported intermittently by independent distributors, mainly for farm and rural use, dating back to 1996.

There is no confirmation that Tata Motors Passenger Vehicles is planning a return to Australia.

However, its growing focus on premium SUVs, electric vehicles and improved product quality would give the brand a very different proposition to the workhorse-focused Xenon that previously represented it locally.