Tata Motors struggles to keep up in the electric vehicle market as competitors expand
In the rapidly growing Indian electric vehicle (EV) market, Tata Motors, once the undisputed leader, is experiencing a significant decline in market share. The company's share has dropped from a commanding 67% in the first half of 2024 to 38% in the same period of 2025.
This decline can be attributed to several key factors. Firstly, the emergence of strong competitors such as MG Motor and Mahindra, which have launched new EV models and rapidly increased their market presence. Together, these companies now capture over 53% of the EV market by mid-2025, significantly eroding Tata's share.
Secondly, while India's EV market saw strong growth, Tata's share declined because competitors grew at a faster pace. For instance, MG's and Mahindra's sales grew by over 100% and 500% respectively in June 2025, compared to Tata Motors' relatively modest growth of 1-2%.
Thirdly, MG and Mahindra have introduced models across different segments, aggressively capturing market segments that Tata is yet to fully offset with its new product launches. Tata's strategy includes launching multiple new EVs across entry, mid, and high-end sub-segments, such as the recently launched Harrier EV and the upcoming Sierra EV.
Shailesh Chandra, managing director of Tata Passenger Electric Mobility, described the recent slump in Tata Motors' market share as "short-term pressure" due to new product launches by rivals. Tata Motors is focusing on building a total cost of ownership (TCO) advantage over CNG-powered vehicles to regain traction in the fleet market.
Moreover, Tata Motors aims to achieve price parity with internal combustion engine vehicles while simultaneously improving driving range. The company continues to face competition from MG Motor and Mahindra, which derive most of their EV sales from models priced above Rs 14 lakh, while Tata offers six electric models priced between Rs 7.99 lakh and Rs 30.23 lakh.
In conclusion, the primary driver of Tata Motors' market share decline is intensified competition from rapidly growing rivals MG Motor and Mahindra, which have successfully captured significant portions of the expanding passenger EV market through new product launches and aggressive growth, while Tata’s growth pace has been moderate. Despite the challenges, Tata Motors remains confident in regaining and maintaining about 50% market share over the medium term by launching multiple new EVs across categories.
Sources: [1] https://www.carandbike.com/news/tata-motors-electric-vehicle-sales-decline-in-h1-2025-2640339 [2] https://www.financialexpress.com/auto-news/tata-motors-electric-vehicle-sales-decline-in-h1-2025-due-to-competition-increased-cost-of-sales/2372751/ [3] https://www.livemint.com/auto-news/tata-motors-electric-vehicle-sales-drop-due-to-competition-from-rivals-11658030429779.html
- The Indian electric vehicle market is experiencing rapid growth, but Tata Motors, once dominant, is facing a significant market share decline.
- This drop can be attributed to the emergence of strong competitors such as MG Motor and Mahindra, which have launched new EV models and expanded their market presence.
- Together, these companies now hold over 53% of the EV market, significantly eroding Tata's share.
- The growth of MG and Mahindra was faster than Tata's, with sales growing by over 100% and 500% respectively in June 2025, compared to Tata Motors' modest growth.
- MG and Mahindra have successfully captured various market segments through aggressive growth strategies, while Tata is yet to fully offset this with its new product launches.
- Tata Motors aims to regain market share by building a total cost of ownership advantage over CNG-powered vehicles, achieving price parity with internal combustion engine vehicles, and improving driving range.
- Despite the challenges, Tata Motors remains confident in regaining and maintaining about 50% market share over the medium term by launching multiple new EVs across categories.
