Indian car company Tata Motors is gearing up to increase production of passenger vehicles. Tata has asked its supplier companies to increase production. The company plans to manufacture 1 lakh passenger vehicles per month from the next financial year i.e. FY28. This step is being taken because currently the demand for Tata cars is more than the current production capacity.

Tata Motors has been producing around 75,000 cars per month for the past three months, ET reported. However, due to limited capacity of suppliers, they cannot produce at full capacity. According to the report, the demand for Tata Motors cars is about 7,000-8,000 units higher than the current sales.

In the first half of FY27, the company has sold an average of 65,000 passenger vehicles per month. In such a situation the production of 1 lakh units per month will be 50% more than the average sales. The company had informed about the capacity expansion plan at a supplier conference held in Pune last month.

Tata will invest ₹40,000 crore

Tata Motors plans to invest ₹37,500 crore to ₹40,000 crore in the passenger vehicle business between FY27 and FY31. The company aims to achieve 20% share in India’s passenger vehicle market by FY31 and sell more than 12 lakh cars annually. If all goes well, Tata Motors’ production capacity could reach 1.3 lakh units per month by FY31.

On the other hand, Tata Motors is gearing up to launch the new generation Nexon in 2027. After this, the Avinya series of vehicles may also be introduced this year. Tata Motors plans to add 6 new models to its portfolio by FY31. With this, the company will have a total of 15 models.

There will be a market of 64 lakh units

Tata Motors said the company continuously reviews its manufacturing and supply chain capabilities in line with market demand and new product plans. However, the company declined to comment on specific information regarding production figures or supplier capacity. According to the company, India’s passenger vehicle market could grow from 47 lakh units in FY26 to 64 lakh units by FY31.