Shailendra Chand highlights strong order book, new launches and rising SUV preference driving 10–15% volume growth target for FY27
Mumbai, January 2026– Tata Motors’ Passenger Vehicle business is on track for double-digit sales growth in calendar year 2026, powered almost entirely by the continued dominance of SUVs and a robust product pipeline, according to Shailendra Chand, CEO – Passenger Vehicles.
Addressing analysts and investors after the company’s third-quarter results, Gupta said:
“SUVs now account for over 68% of our domestic PV mix and the trend is only strengthening. With the order book at multi-year highs and several important launches lined up in the first half of 2026, we are confident of delivering double-digit volume growth this year.”
Key Drivers of Growth
- SUV Portfolio Strength
- Nexon, Punch, Curvv, Harrier/Safari and the recently launched Sierra have created a wide product moat across sub-4 metre, mid-size and premium segments.
- Curvv EV and Curvv ICE together crossed 15,000 monthly dispatches within four months of launch — among the fastest ramp-ups in Tata Motors history.
- Upcoming Launches (H1 2026)
- Punch facelift and EV version
- Altroz facelift (including petrol & CNG)
- Sierra ICE & potential EV derivative
- Avinya-based premium electric SUV (expected late 2026)
- Order Book & Retail Momentum
- PV order book stands at ~1.45 lakh units (highest in over three years).
- Retail share in the 4-wheeler segment has risen to ~15.2% in Dec 2025 from 13.8% a year ago.
- EV Contribution While pure ICE SUVs continue to lead volume, the EV portfolio (Nexon EV, Curvv EV, Punch EV) is growing steadily and now contributes ~12–14% of PV sales in key metros.
Financial & Margin Outlook
Gupta indicated that operating margins in the passenger vehicle business are expected to improve further in FY27 on the back of:
- Better product mix (higher SUV & EV share)
- Operating leverage from higher volumes
- Continued cost-reduction efforts
The company maintained its earlier guidance of sustained double-digit growth in PV volumes for CY2026, with SUVs expected to contribute ~70–72% of total dispatches by the end of the year.
Market Reaction
Tata Motors shares rose ~2.8% intraday after the commentary, closing at ₹812.45 on the BSE, as investors cheered the clear visibility on volume and margin trajectory.
Conclusion
With a strong SUV-led portfolio, disciplined execution and timely new launches, Tata Motors Passenger Vehicles is well-positioned to outpace industry growth in 2026. The CEO’s confident outlook reinforces the street’s view that Tata Motors PV is entering a new growth phase driven by product strength and consumer preference shift towards SUVs.
