NEW DELHI: Tata Motors Passenger Vehicles Ltd (TMPV) has seen a 2-2.5 times jump in demand for electric vehicles (EVs) since tension broke out in West Asia on February 28. To cater to the growing demand, the country’s largest electric carmaker will enhance its EV production by 50% in the next three to four months.
TMPV on Thursday also launched the Next Gen electric Tiago at a starting price of Rs 6.99 lakh. The popular hatchback is also launched in Petrol and iCNG powertrains at Rs 4.99 lakh.
“If I am seeing for the last two months, I was just comparing the monthly bookings that we get in electric vehicles prior to February. And what we are getting today, it is 2-2.5 times more," said Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra.
He added that EV demand had already begun gaining traction even before the recent fuel price hikes, possibly in anticipation of higher running costs. On increasing the capacity for EVs, Chandra said that in the next three to four months, they should be able to enhance capacity by at least 50% more than what they are doing today.
At present, TMPV produces around 10,000 EVs a month. The company aims to increase this production to 15,000 units.
However, on the supplier side, Chandra said the company would need to work with suppliers on agreed supply schedules ranging from three months to a year, depending on requirements. In several cases, suppliers may already have spare capacity and only need clarity on production scheduling to begin supplies, while in some instances, additional investments in production lines may be required, he added.
He also projected that EV penetration in the Indian passenger vehicle market, currently around 5-6%, could rise to 8-10% this year if supply constraints ease. Electric PV sales closed FY2026 with record retail sales of 200,946 units up 85% year-on-year. The strong momentum continued in April 2026 with sales surging 73% to 23,163 units to customers, as per Vahan data. TMPV remained market leader with 36.7% market share or 8,506 units.
Chandra also said that the impact of the fuel price hike on overall consumption needs to be monitored to gauge its effect on the automobile demand, and it is premature to change the FY27 outlook of 10% growth in PV sales. "Even fuel prices are evolving. Right now in the last 10 days, there are four increases. So, you do not know where this is going to end. That's the first layer of what can impact and be a headwind to the industry," said Chandra.
On the launch of the new Tiago, Chandra said that hatchbacks remain the gateway to personal mobility for millions of Indian families and yet, for far too long, this segment received scarce attention from the industry, when it genuinely deserved far more.
“In a sub-Rs12 lakh segment where EV penetration remains below 2%, this is precisely the ownership proposition that will move the needle. Three distinct powertrains -- Petrol, iCNG and EV -- two distinct customer journeys, and one unified conviction: that modern design, advanced technology and genuine safety are not privileges reserved for higher segments,” he added.