People’s craze for Tata’s electric cars increased, now the company has made a master plan to increase the supply.

Tata Motors is one of the largest electric car selling companies in the Indian market. Seeing the increasing demand, the company has now faced a big challenge. In fact, customer demand for electric vehicles is far greater than the company is able to produce and supply. Currently Tata Motors is able to meet only 60 to 65 percent of the total demand. Seeing this, the company has decided to increase the supply of EVs.

Tata Motors aims to supply around 20,000 electric vehicles per month in the next 2 to 3 months. Currently the company is supplying around 16,000 EVs every month. The number was around 9,000 units during March-April, the company’s managing director Shailesh Chandra said in the Q2 FY27 earnings call. After this the supply has been increased to 16,000 units. Now preparations are underway to take it closer to 20,000 soon.

Electric car sales have increased by 90 percent

The company has also seen good growth in sales of electric vehicles. Tata Motors sold over 47,000 EVs in Q2 of FY27. This is an increase of almost 90 percent compared to the same quarter last year. Keeping in view the high demand, the company’s plants are operating at full capacity. However, the average stock of electric cars at dealerships is only 10 days.

The manufacturing plants of the company can be changed as per the requirement to produce petrol, diesel and electric vehicles. However, to build more vehicles, companies that supply parts will also have to increase their production.

Growing trend towards EV and CNG vehicles

According to Tata Motors, the share of alternative fuel vehicles like EV and CNG in its total sales in the September quarter has crossed 50 percent. Talking about the overall passenger vehicle market, electric cars accounted for around 8 percent and CNG vehicles around 25 percent in Q2 of FY27. On the other hand, the share of petrol cars is declining, while the share of diesel vehicles is stable at around 17 percent.

The company expects the passenger vehicle market to grow at a rate of 12 to 13 percent for the full financial year. However, the pace may stay around 5 percent in the second half due to last year’s strong sales. The Tata Punch was the company’s best-selling car during the quarter. At the same time, the rural market contributed 44 to 45 percent of the company’s total retail sales of passenger cars.

Tata car prices may go up

Inflation in raw materials has put pressure on the company’s profits. Tata Motors has so far been able to manage only 40 percent of the increased costs through price hikes and cost-cutting measures. The rest of the cost is borne by the company itself. This pressure is likely to continue in the third and fourth quarter as well. In such a scenario, the company may increase vehicle prices again in Q4 of FY27. This time the increase may be slightly higher than before.

JLR cuts profit estimates

Tata Motors subsidiary JLR also cut its adjusted EBIT margin forecast for FY2027 to 2 to 3 percent from 4 percent. The company expects free cash flow of around £1.25 billion. Weak demand and challenging business environment in China are the main reasons for this.

Despite this, JLR is working on a new electric model. The company has started production of Range Rover Electric and Range Rover Sport Electric. Their delivery is expected early next year. Notably, nearly 5,000 orders have been received for these vehicles even before customers have had a chance to view or test drive them.

Is your car also fitted with a CNG cylinder? If not tested in time, great damage can be done.