en.Wedoany.com Reported - N Chandrasekaran, Chairman of India's Tata Group, recently stated that the group has set an ambitious target to double its combined automotive revenue to $100 billion over the next five years. This goal is underpinned by aggressive product expansion, sustained investment, and growth in its domestic passenger vehicle, commercial vehicle, and Jaguar Land Rover (JLR) businesses.
The target encompasses Tata Motors' passenger vehicle business, Tata Motors' commercial vehicle business, the British luxury car division Jaguar Land Rover (JLR), and automotive components manufacturer Tata AutoComp Systems (Taco). Responding to shareholder queries at Tata Motors' annual general meeting, Chandrasekaran said JLR is expected to contribute $45 billion to $50 billion in revenue by fiscal 2031, while the commercial vehicle business is projected to surge to around $40 billion.
According to Chandrasekaran, the overall automotive business is expected to achieve profits exceeding $5 billion by fiscal 2031. In fiscal 2026, Tata Motors reported combined automotive revenue of $50 billion, including $38 billion from JLR and Tata Motors' passenger vehicle business, while Tata Motors Limited, focused on commercial vehicles, contributed $9.5 billion. The unlisted Tata AutoComp Systems (in which Tata Motors holds a 26% stake) posted revenue of $2.5 billion in the previous fiscal year.
In the passenger vehicle segment, Tata Motors aims to increase its market share from the current approximately 14.2% to 20% by fiscal 2031. This growth will be supported by the launch of six new models and over 20 product updates over the next five years. Chandrasekaran stated that the group targets annual sales exceeding 1.2 million units, achieving a 20% market share and double-digit EBITDA margins, while strengthening its product lineup through the introduction of six new models and over 20 product updates, with electric vehicles accounting for more than 30% of its sales.
The company also plans to maintain its leadership in the electric vehicle segment by sustaining a 40-45% market share, driven by a broader product portfolio covering multiple price points. Management indicated that the upcoming Sierra electric SUV has the potential to become one of Tata Motors' best-selling models. Tata Motors plans to invest approximately 400 billion rupees in its domestic business over the next five years, while JLR has allocated around £20 billion during this period. Battery manufacturing subsidiary Agratas is expected to commence production in calendar year 2027 and will supply the first cells to Tata Motors and JLR as the group accelerates battery localization.
The company stated that through cost optimization, material savings, and pricing improvements, the passenger vehicle business is expected to break even at an annual sales volume of around 300,000 units. Regarding JLR, management maintains a neutral outlook but said the business is on track to restore double-digit EBITDA margins this year, with a medium-term target of 15%. The electric Range Rover and electric Jaguar are scheduled for launch in the second half of this year. The company identified execution, supply chain disruptions, and cybersecurity as key risks, while adding that the 2025 cyber incident at JLR has been resolved. Tata Motors also plans to expand exports to South Africa and deepen its presence in Commonwealth markets such as Malaysia and Australia, as well as in the UK and Europe.
