See No Need To Launch Hybrid Cars: Tata Motors MD Shailesh Chandra
A lot of major automakers in India, as well as the rest of the world, have slowed down their electric vehicle expansion plans. However, currently, India's second-largest automaker, Tata Motors, which is also the largest electric vehicle manufacturer in India, has stated that EVs will become financially stronger in the coming period, and they will not be cutting back their EV program. The company also highlighted that EVs, in the longer run, will even become more profitable than ICE vehicles, and they will not be launching hybrids anytime soon.
Recently, Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, stated that Tata Motors remains fully committed towards EVs. He even added that the company does not see any immediate need to introduce hybrid vehicles in its passenger vehicle portfolio. Chandra stated that EVs in the future could become even more profitable than ICE vehicles.
Presently, many automakers are recalibrating their EV plans because of slowing demand growth and concerns over profitability. However, despite this, Tata Motors believes that electric vehicles are the future, and for this reason, the company will remain strongly focused on expanding its EV portfolio and business in India.
He stated that, looking from a mid-term and long-term perspective, electric vehicles are becoming equally profitable or even more profitable than traditional ICE vehicles. Chandra added that Tata Motors is also maintaining very healthy profitability with its EVs. And the profitability has not been compromised when compared to ICE models.
During the interview, Shailesh Chandra also explained that, in the coming years, internal combustion engine vehicles will become more expensive. He stated this because, in the future, we will be seeing stricter emission norms and more regulatory requirements. Meanwhile, on the other hand, he added that EVs will become more affordable with time.
The main reason behind this is that the prices of batteries are gradually reducing. Additionally, localization in the EV manufacturing process is improving, and economies of scale are increasing. Apart from it, Tata Motors also believes that, over the next few years, EV manufacturing costs will also reduce. Meanwhile, the costs associated with petrol and diesel vehicles will increase.
Coming to the topic of hybrid vehicles, Chandra very clearly mentioned that Tata Motors currently does not see any immediate need to bring hybrid vehicles into its lineup. He explained that most manufacturers introduce hybrids mainly for two reasons. The first is to comply with CAFE or Corporate Average Fuel Efficiency regulations. And the second reason is because many automakers have completely exited diesel engines.
However, Tata Motors currently works on a multi-powertrain strategy, and it already has petrol, diesel, CNG, and electric vehicles in its portfolio. As a result of this diversified lineup, the company does not urgently require hybrids to balance its emissions or fuel efficiency targets.
Chandra also mentioned that Tata Motors already has the capability to introduce hybrid technology at short notice if there is a requirement. However, the company is not in any hurry to launch hybrid vehicles.
One of the biggest highlights shared by Chandra was that CNG and EVs together currently contribute to 43 percent of Tata's passenger vehicle sales volumes. This means that almost half of Tata Motors' passenger vehicle sales are now coming from alternative fuel vehicles instead of petrol and diesel models.
The company also revealed that it recently achieved its highest-ever EV sales in FY26. For those who may not be aware, Tata Motors sold over 92,000 electric vehicles during the financial year, which translated to a massive 43 percent year-on-year growth. Additionally, the company maintained over 40 percent market share in the EV segment for the seventh year in a row.
Apart from Tata Motors' own EV growth, the overall Indian passenger EV market has achieved a major milestone in FY26. For the first time ever, the Indian EV passenger vehicle industry crossed the 2 lakh annual sales mark. The segment also managed to register over 80 percent year-on-year growth. This shows that EV adoption in India is increasing.
Another major point which Shailesh Chandra highlighted was that the demand for EVs has become even stronger in the last few months. He stated that bookings for EVs have increased by around 25 to 30 percent due to the conflict between Iran and the USA. Many people are concerned about fuel price hikes and their availability. So, in order to avoid these issues, people are now opting to buy electric vehicles.