Tata Motors, a long-time leader in India’s passenger electric vehicle (EV) market, is experiencing a notable decline in its dominant position as competition intensifies. According to recent Vahan data, the company's retail market share in the EV segment slipped to 38% during the first half of 2025 (January–June), a sharp fall from the 67% it held in the same period last year. This drop is accompanied by a decrease in overall sales volume.
Between January and June 2025, Tata Motors sold 28,439 electric vehicles, down from 32,715 units sold in the same months of 2024. In contrast, the overall passenger EV market has surged by 50% year-on-year, reaching 74,453 units from 48,877 during the same period in 2024.
Tata Motors’ once-unassailable lead in the EV space is now being challenged by new competitors introducing attractive alternatives. The automaker’s market share has been steadily decreasing—from a staggering 95% in February 2022 to just 36% by June 2025. Brands like MG Motor and Mahindra & Mahindra have made significant inroads by launching new models at competitive prices.
MG Motor has seen the most dramatic growth, increasing its market share from less than 1% in February 2020 to a robust 30% by June 2025. This surge is largely thanks to the success of its Windsor EV. Mahindra has also gained strong momentum, securing 22% of the market in June with popular models like the XEV 9e and BE6. With upcoming launches from Maruti Suzuki and Hyundai, the competition is set to become even fiercer.
Despite these challenges, Tata Motors remains optimistic about its future. Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, referred to the recent decline as “short-term pressure” caused by a wave of new product launches from rivals. He expressed confidence that Tata will soon reclaim a market share exceeding 50% in the EV segment.
Chandra emphasized that Tata continues to lead the sub-Rs 12 lakh EV category, thanks to popular models like the Tiago and Punch, which help the company maintain over 75% share in that segment. He also noted that Tata is focused on achieving price parity with internal combustion engine (ICE) vehicles while enhancing driving range. In the Rs 12–20 lakh mid-segment—a bracket expected to become the highest-volume category—Tata aims to further expand its presence. For the premium segment, the Harrier EV and the upcoming Sierra EV are expected to play key roles.
Chandra attributed the recent slowdown in demand to several factors, including the discontinuation of certain platforms, a reduction in fleet orders, and the end of the FAME II subsidy scheme. To regain its foothold in the fleet market, Tata Motors is now focusing on building a total cost of ownership (TCO) advantage over CNG-powered vehicles.
Currently, Tata Motors offers six electric models priced between Rs 7.99 lakh and Rs 30.23 lakh. These include the Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, Curvv.ev, and Harrier.ev. In contrast, both MG Motor and Mahindra offer three EVs each, with pricing strategies that directly challenge Tata’s lineup.
Unlike Tata, MG and Mahindra generate the majority of their EV sales from models priced above Rs 14 lakh. For instance, MG’s Windsor EV starts at Rs 14 lakh, while Mahindra’s BE6 and XEV 9e have starting prices of Rs 18.90 lakh and Rs 21.90 lakh, respectively. Industry analysts believe that the launch of the Harrier.ev could strengthen Tata Motors’ position in the premium EV segment.