Chandrasekaran Outlines Plan to Nearly Double Tata Motors' Sales to 1.2 Mn by 2030

Tata Group Chairman N Chandrasekaran has called on Tata Motors' passenger vehicle dealer network to prepare for a major expansion, setting a target of nearly doubling annual sales to around 1.2 million vehicles and capturing over 20% market share by 2030, the Economic Times reported, citing people who attended the company's dealer meet in Goa.

The targets represent a marked step up from Tata Motors' current position. The company sold 641,587 passenger vehicles, including exports, in FY26, a 15% increase over the previous year. Its market share stood at 14.2% at the end of the March quarter.

Chandrasekaran framed the ambition around an industry-wide projection. If the domestic passenger vehicle market grows to six million units annually by 2030, Tata Motors should aim for 1.2 million of those, he reportedly said. "There is no reason why we should not aim for around 1.2 million vehicles and 20%-plus market share," he said as quoted by ET.

Investments and Demerger

To support the growth plan, Tata Motors has committed investments of around ₹35,000 crore through 2030, a figure that could be revised depending on market conditions, the report added.

Chandrasekaran also described the gathering as a milestone, noting it was the company's first dealer meet since the demerger of its passenger vehicle and commercial vehicle businesses.

Recalling the company's trajectory, Chandrasekaran reportedly said Tata Motors faced considerable scepticism about its passenger vehicle business in 2017, with some voices suggesting it exit the segment and focus solely on commercial vehicles. The company chose otherwise, backed by confidence in its products, market opportunity, and dealer network, he said.

Tata Motors has since built a competitive product portfolio, strengthened its financials, and established a leadership position in electric vehicles, with its early EV investments now seen as a strategic advantage, ET reported.

Chandrasekaran stressed the need for Tata Motors to move from being a "good company" to a "great company", calling for greater resilience, agility, and execution consistency. Product quality, safety, design and customer experience would remain non-negotiable, he reportedly added.

Notably, a few days ago reports had claimed that Jaguar Land Rover (JLR), the British luxury car unit of Tata Motors, is raising £2 billion through a five-year syndicated loan from a group of multinational banks to refinance debt due early next year.

The loan is expected to be priced at 155 basis points above the Sterling Overnight Index Average (SONIA), the UK benchmark rate currently trading at 3.73%, implying an effective rate of around 5.28%.

Around seven banks are acting as core underwriters — the first such loan arrangement for the company in several years — and the facility is set to be syndicated to a wider group of lenders, likely close to 20 banks in total, by the end of this month.

The core underwriters include Singapore's DBS Bank, Citibank of the United States, UK-based Standard Chartered, HSBC (Hong Kong and Shanghai Banking Corporation) and Japan's Mitsubishi UFJ Financial Group (MUFG), all of which have reportedly already committed funds.

Chandrasekaran Reappointment in Limbo

The Goa dealer meet comes amid an unresolved question over Chandrasekaran's own future at the helm of Tata Sons, whose board remains deadlocked over his reappointment as chairman. His current term at Tata Sons ends in February 2027.

At the Tata Sons board meeting on May 26, convened by Chandrasekaran to address concerns raised by Tata Trusts Chairman Noel Tata at a February 24 meeting, where the reappointment had already been deferred, Noel Tata indicated that a formal discussion on Chandrasekaran's reappointment would be premature.

At the meeting, Tata Electronics, and Tata Digital made presentations on their businesses. Towards the close of the meeting, a few directors informally raised the question of whether Chandrasekaran's reappointment could be taken up at the next meeting, according to a previous report by ET. Noel Tata indicated it was still too early, citing unresolved matters that require further engagement, the report added.