Daijiworld Media Network – Mumbai
Mumbai, May 28: Tata Motors plans to increase its electric vehicle (EV) production capacity by at least 50 per cent over the next three to four months as demand for EVs continues to surge amid rising fuel prices and changing consumer preferences.
The company’s Managing Director and CEO Shailesh Chandra said EV bookings have risen by nearly 2 to 2.5 times in recent months, with demand significantly exceeding current production capacity.
Speaking ahead of the launch of the new Tiago hatchback range, Chandra said Tata Motors currently has an EV production capacity of around 9,000 to 10,000 units per month.
“The demand is about 2.5 times more than our capacity. We will have to rampantly increase it,” he said.
According to Chandra, the primary challenge lies not in Tata Motors’ manufacturing facilities but in supplier-side constraints.
“In-house capacity is not a problem. It is more on the supplier side that we will have to revise our schedules in many cases. In some cases, they have to install fresh equipment and so on to increase the capacity,” he said.
“Broadly speaking, in the next three to four months, we should be able to enhance the capacity, at least 50 per cent more than what we are at today,” he added.
Tata Motors currently offers several EV models including the Tiago.ev hatchback, Tigor.ev sedan, Punch.ev SUV, Nexon.ev SUV, Curvv.ev SUV and Harrier.ev SUV. The company is also preparing to launch the Tata Sierra.ev later this year.
The Tiago.ev and Tigor.ev are manufactured at Tata Motors’ Sanand facility, while the Punch.ev, Curvv.ev and Harrier.ev are produced at the Pune plant. The Nexon.ev is manufactured at both locations.
The company’s announcement comes amid a sustained increase in fuel prices linked to global crude oil volatility and tensions in West Asia. Petrol and diesel prices have reportedly risen by around Rs 7.5 per litre since May 15.
Chandra said smaller car buyers are more sensitive to fuel-cost increases, leading to a visible shift towards EVs and alternative powertrains.
“There is a sharp jump that we see in EV bookings. In our case, it is about 2-2.5 times of what it used to be in just two months. Things have changed completely in the last 15 days,” he said.
Industry data released by the Federation of Automobile Dealers Associations (FADA) also reflected the rising momentum in the EV passenger vehicle segment.
According to FADA data, Tata Motors’ electric vehicle sales rose from 5,568 units in February 2026 to 8,253 units in March 2026 and further to 8,543 units in April 2026.
Across the industry, electric passenger vehicle sales increased from 13,733 units in February 2026 to 22,490 units in March 2026 and 23,506 units in April 2026.
Chandra noted that the strongest demand growth is currently being witnessed in EVs priced below Rs 15 lakh.
“It is across the board for sure, but more in less than Rs 15 lakh segment of EVs, possibly indicating that people want at least one electric car in their garage to be ready for different scenarios,” he said.
The company is also witnessing robust demand for the Punch.ev, launched in February 2026.
“Our current demand for the Punch.ev might be five times more than what we were getting before February 2026. Because of the new product and value proposition, we had imagined that the growth would be three times. So we had planned for that kind of growth. But we will have to take it to a higher level now,” Chandra said.
Tata Motors has crossed cumulative EV sales of 3 lakh units in India, with the Tiago.ev alone selling nearly 75,000 units since its launch in 2022.
On Wednesday, the company launched the new Tiago petrol variant at an introductory price of Rs 4.69 lakh, the Tiago CNG at Rs 5.79 lakh and the Tiago.ev at Rs 6.99 lakh (all ex-showroom prices).
The company also introduced a Battery-as-a-Service option for the Tiago.ev at Rs 4.69 lakh along with a battery usage charge of Rs 2.6 per kilometre.