Tata’s EV Business Loses Market Share: How 35000 Crore Plans Could Save It

Introduction

Have you heard the news? Tata’s EV business loses market share, and many people are worried. In this blog, we’ll explore why this is happening. We’ll talk about different parts of Tata Motors, like Jaguar Land Rover, normal cars, and electric vehicles (EVs). We’ll also talk about what experts think and what might happen next.

So even if you’re 8 or 80, you’ll understand what’s happening—and what it could mean for the future. Let’s dive in!

1. What Happened to Tata Motors Stocks?

A Long Drop

Tata Motors has been falling for about 1.5–2 years. That’s a long time! People are asking:

• How long is long-term?
• Does it even make sense to buy now?
• What’s wrong?

I’ll answer all of these.

2. The Big Problem: Jaguar Land Rover

Jaguar Land Rover (JLR) is the luxury car part of Tata Motors. It used to bring in lots of money and profits. But now:

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• Their profit margins dropped from 8.5% in 2025 to an expected 5–7% in 2026.
• That decline scared shareholders and caused stock to drop by 5–10%.
• Free cash flow went from €1.5 billion in 2024 to almost zero now.
• JLR used to bring in 71% of Tata Motors’ revenue—so when it struggles, the whole company does.

All of this is why Tata’s EV business loses market share, but remember—problems started sooner, before this news.

3. Passenger Cars: Everyone’s Fighting for Attention

Tata Motors makes normal petrol and diesel cars too. But they’ve hit a few bumps:

• People say Tata cars look nice and feel solid.
• But some features don’t work right, and those problems spread quickly on social media.
• Critics on YouTube have pointed out problems—some say “don’t buy Tata Safari” because of broken screens or sunroofs.

Here’s what happened in May 2025:

Big drop for Tata—but Mahindra is winning right now.

4. The EV Story: More Competition, Falling Share

Electric cars are another big area for Tata. But:

• Their EV sales dropped 15% year-on-year.
• Market share went down to 35%.
• Tata’s EV business loses market share because other carmakers are stepping up.

Competitors include:

• MG– 30% EV share, sales +15%
• Mahindra– 21%
• Hyundai– 4.9%

Even though Tata is still leading, others are catching up fast. So Tata’s EV business loses market share.

Tata aims for 20% EV penetration by 2027 and 30% by 2030—big goals!

5. Assembly, Recall, and Service Issues

Another issue is car service and repairs. Because Tata cars are packed with tech:

• When one thing breaks—like a screen or sunroof—it frustrates owners.
• By May 2025, Tata worked hard to improve service:
  • Added 1,330 service bays
  • Complaints dropped by 80%
  • Repeat issues are down by 25%
  • Adding 1,600 more bays in 25 cities

Tata says they’re fixing service, but rebuilding trust takes time. Right now, Tata’s EV business loses market share, partly because unhappy treatment turns people away.

6. Experts Weigh In

Analysts from big firms say:

• Kotak Equities: Rated Tata Motors with a target price of ₹600.
• Motilal Oswal: Neutral rating, ₹690 target.
• Moody’s upgraded Tata’s rating from BA2 to BA1—saying the company looks cheaper now than before.

The company is also splitting passenger and commercial vehicles. Moody’s thinks this could help, since JLR’s ups and downs won’t affect the rest of the business so much.

7. Tata’s Strategy: What’s Next?

EV Expansion

Tata wants to lead in EVs again. They promise:

• 20% EV penetration by 2027
• 30% by 2030
• Over 22,000 public chargers and 1 million home chargers
• 120 kW mega-chargers and more highway chargers

Tata works with Tata Power to build charging stations. But competition is strong. So Tata’s EV business loses market share unless they can improve.

New Cars

Tata plans to release:

• 30 new products
• 7 new models
• 23 versions including SUVs, coupes, crossovers
• Exciting upcoming models: Sierra and Avenia (EV), plus new petrol/diesel cars

If they deliver good new cars, they can win back customers.

8. Why Does This Matter to You?

Whether you’re 8 or 80:

• If Tata’s EV business loses market share, it could mean fewer people buy their electric cars.
• This could affect Tata Motors’ future, stock price, and reputation.
• But if they execute their plan—strong EVs, reliable service, smart marketing—they might turn things around.

9. Is Tata Motors a Good Buy Now?

Let’s look at the numbers:

• P/E ratio is around 11—low, which can make it a bargain.
• Debt-to-equity ratio is about 0.6—not too high.
• Analysts say the stock is undervalued—if things go well, stock could rise.
• But analysts also say Tata’s EV business loses market share, so risk remains.
• So make up your own mind. Do your research before investing.

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10. Final Thoughts

Here’s what we’ve learned:

1. Jaguar Land Rover problems are a big drag.
2. Passenger car issues—and tech glitches—hurt trust.
3. EV competition is intense: MG, Mahindra, Hyundai are gaining ground.
4. Service problems reduce popularity, even though Tata is improving.
5. Analyst opinions are mixed: some see value, others are cautious.
6. Plans for growth are bold—but execution will decide everything.
7. Financials look good on paper, but execution risk remains.

And yes—Tata’s EV business loses market share now, but it can still come back if Tata keeps improving. The next few years will be important.

Conclusion

So, what do you think? Do you believe in Tata Motors’ comeback? Can they stop the losses, fix problems, and return to growth? Or will Tata’s EV business lose market share even more?