Tata Motors Passenger Vehicles, one of the leading automakers in the country, is charting a confident course for FY2027. The company is sees its multi-powertrain leadership, capacity flexibility and industry-outperformance ambitions to drive a strong H2 for fiscal 2027.

Shailesh Chandra, Managing Director and CEO, of Tata Motors Passenger Vehicles, struck a distinctly forward-looking tone in the company’s Q1 FY27 virtual conference, outlining a strategy built on sustained demand for alternative-energy vehicles, flexible manufacturing, product intensity and disciplined capital allocation even as the broader industry navigates inflationary and commodity headwinds.

He characterised the remainder of FY2027 as a period of continued outperformance relative to the passenger-vehicle industry. Tata Motors at 14.1 percent had already delivered growth roughly twice the industry average of 7.9 percent in FY2026 and a robust 45 percent in Q1 FY2027 as against the industry average of 25.9 percent.

The management expects this momentum to persist. Industry volumes are projected in the mid-double-digit range of 15-20 percent for the remainder of the year in some scenarios.

Tata Motors, on the other hand, is targeting sustained growth even if overall industry expansion moderates to single digits in the second half because of a high base effect from strong H2 FY2026 demand.

Inventory levels are meaningfully lower than a year earlier, creating scope for healthier retail offtake. Q2 is expected to be more challenging for the industry as a whole due to cost pressures, with the second half potentially tighter still for conventional passenger vehicles.

Chandra, however, intends to defend and expand market share through timely product refreshes, facelifts and new nameplates across both ICE and electric portfolios, while prioritising supply-side capacity increases. Waiting periods across the Tata Motors range currently stand at 4-6 weeks, reflecting healthy demand.

Hatchbacks continue to contribute around 15-20 percent of the mix, while SUVs remain the structural growth engine. Export plans include opening a significant new market next year, with a dual focus on ICE and EV products; recent export growth has been driven primarily by South Africa.

Alternative Energy Mix

The shift toward alternative powertrains is central to Chandra’s vision. Industry EV penetration has reached approximately 8 percent – the highest among passenger-vehicle markets – and is expected to climb toward 10 percent by end-FY2027.

Tata Motors’ own EV share of its portfolio has risen from around 38 percent and is targeted at upwards of 40 percent (for the remainder of the year), supported by strong customer acceptance. EV demand has jumped sharply (management noted a 3-4 times increase relative to February levels for the company), but supply remains the binding constraint rather than underlying demand. Chandra revealed that the strong demand for EVs versus supply-side constraints has led to waiting periods for EVs of around 4-6 weeks.

CNG demand is robust: industry CNG share stands near 22 percent, while Tata Motors’ mix is higher at around 27 percent. The outlook remains positive as the CNG station network expands from roughly 8,500 to 15,000-16,000 stations in the coming year. CAFÉ norms (particularly CAFÉ 3 and CAFÉ 4) will further accelerate the push toward alternative-energy vehicles; for OEMs with credible EV offerings, electrification is the most powerful compliance lever.

Sharing his perspective on hybrid technology, Chandra stated that its share in the overall PV segment has stabilised at a modest 2-2.5 percent share. Tata Motors remains ready to introduce hybrids if market conditions warrant, but current emphasis is clearly on CNG and pure electric.

In Q1 the combined CNG-plus-electric mix rose from 19-21 percent to 24 percent. Management is optimistic that EV volumes for the company could grow 70 percent in FY2027, even allowing for some high-base effects in the second half, with overall company growth of 10-15 percent still feasible.

Capacity, Cost Pressures and Capital Plans

For Tata Motors internal EV capacity is not a bottleneck since production systems are fungible and flexible; capacity has already been stepped up from 9,000 to 13,000-14,000 units and reached more than 15,000 units last month, with further increases planned.

Responding to lower-than-anticipated sales for the popular Sierra SUV, the company attributed the temporary production impact to constraints from casting and sheet-metal suppliers plus a five-day production loss at the Sanand plant due to heavy rains, but corrective actions are under way.

Profitability in the recent period was pressured primarily by commodity-price inflation (approximately 4-4.5 percent impact) plus roughly 1 percent from other factors. Cost-reduction initiatives have partially offset these headwinds; in a normalised quarter, margins would have expanded more significantly. Certain PLI benefits were deferred because of new-product launches but will be reapplied in due course.

However, it is important to note that Chandra has emphasised that CAPEX plans remain unchanged at around 6-8 percent of revenue, which will continue to be directed toward new products, technologies and capacity expansion. Management sees no need to revise the programme despite margin pressure.

On the E20 contamination issue raised in the market, Tata Motors has not experienced customer reports and was not among the OEMs that submitted data on the matter.

Jaguar Land Rover Perspective

Richard Molyneux, CFO of JLR, noted that the luxury brand is a truly global business with only a small percentage of sales in India. China remains challenging, production of legacy products (including Jaguar) has been wound down, and a fire plus broader global slowdown affected Range Rover output. Q1 is seasonally soft for JLR, but the team is optimistic about sequential improvement. India is viewed as a significant growth market going forward, supported by existing domestic assembly and imports, with plans to expand the brand’s presence rapidly.

Chandra’s message is one of controlled confidence. Tata Motors Passenger Vehicles enters the balance of FY2027 with lower inventories, a flexible multi-powertrain portfolio that is already capturing rising CNG and EV demand, fungible capacity that can scale with the market, and an intact investment programme focused on product and technology. While the industry faces near-term cost and base-effect challenges, the company’s leadership in alternative energy, combined with ongoing product intensity and supply-side focus, positions it to continue outgrowing the market and to deepen its role in India’s evolving mobility landscape.

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Czech automaker Skoda Auto India has reintroduced the Octavia RS sedan, making 50 units available nationwide following an initial allocation in 2025 for INR 5.66 million (ex-showroom).

The announcement coincides with the 30th anniversary of the Octavia nameplate and follows a showcase event on 18 August alongside the Slavia and Superb models, where bookings for the batch opened. The company is set to begin deliveries next week.

The Octavia RS is powered by a 2.0-litre TSI engine producing 195 kW (265 PS) and 370 Nm of torque. Mated to a seven-speed DSG transmission, it has a claimed acceleration of zero to 100 kmph in 6.4 seconds and reaches a limited top speed of 250 kmph.

It features LED matrix headlights, 19-inch alloy wheels and a 600-litre luggage compartment. The Octavia RS measures 4,709 mm in length, 1,829 mm in width and 1,457 mm in height. Exterior finish options comprise Mamba Green, Velvet Red, and Magic Black.

On the inside, it gets suede and leather upholstery, sports seats with heating and massage functions, a 32.77 cm infotainment display and a head-up display. Safety equipment includes 10 airbags, a 360-degree camera and advanced driver assistance systems (ADAS) including adaptive cruise control, autonomous emergency braking, lane assist, and park assist.

Ashish Gupta, Brand Director, Skoda Auto India, said, “The Octavia RS is not just a car for Skoda Auto India; it is an icon that has shaped the aspirations of driving enthusiasts in the country. The response to the first batch last year was extraordinary, with demand far exceeding availability and reaffirming the deep passion Indian customers have for Skoda’s performance-led, driver-focused cars. Bringing a second limited batch to India is our way of celebrating that enthusiasm and giving more customers the opportunity to own a nameplate that carries a powerful legacy. As the Octavia marks 30 years globally, and the RS badge continues its journey of over five decades, the Octavia RS stands as a rare combination of performance, everyday usability and emotional connection. We are delighted to bring back this limited set for customers who understand, value and truly live the spirit of RS.”

The Octavia RS comes with a four-year or 100,000-kilometre warranty.

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Japanese luxury car brand Lexus India has launched the self-charging hybrid ES 350h executive sedan, introducing the eighth-generation iteration of its core model line at prices starting INR 6.61 million for the Exquisite variant, going up to INR 7.18 million for the Luxury variant (ex-showroom).

Manufactured in India, the ES 350h shares its underlying platform with the battery-electric ES 500e and gets an updated 2.5-litre inline four-cylinder engine paired with an electric motor, an integrated power control unit eAxle and a lithium-ion battery pack. The IC-engine generates 139 kW at 6,000 rpm and 237 Nm of torque between 3,600 and 5,000 rpm, while the electric motor produces 119.1 kW. It achieves a claimed certified fuel efficiency rating of 25.22 kilometres per litre.

The ES 350h measures 5,145 mm in length, 1,920 mm in width and 1,575 mm in height, with a 2,950 mm wheelbase. On the outside, it gets daytime running lamps (DRL) integrated into turn indicators and rear lighting positioned on the outer body edges.

On the inside, the cabin features a 14.0-inch touchscreen multimedia interface and hidden switches built directly into the interior surfaces. Active safety features are provided through the Lexus Safety System+ suite, which includes pre-collision detection, radar cruise control, lane tracing assist and emergency braking systems.

Hikaru Ikeuchi, President, Lexus India, said,"Today marks a significant milestone for Lexus in India as we launch the All-New ES 350h. Building on the immense success of its predecessors, this launch reflects our long-term commitment and continued efforts to deliver vehicles of world-class quality tailored to the needs of our guests in India. Manufactured in India, the All-New ES 350h embodies our multi-pathway approach to sustainable mobility, seamlessly blending advanced technology, exceptional ride quality, and luxury. Renowned for its Takumi craftsmanship and inspired by the spirit of Omotenashi hospitality, it offers an elevated experience defined by comfort, innovation, and meticulous attention to detail. As the lifestyles and landscape continues to evolve, we remain committed to delivering vehicles that inspire confidence, enrich lifestyles, and contribute to a more sustainable future. We are confident that the All-New ES 350h will set new benchmarks in its segment, further strengthen the Lexus brand in India, and exceed the expectations of our guests."

The ES 350h comes with an eight-year or 200,000-kilometre warranty for both the car and its hybrid battery pack.

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Stellantis India completed the delivery of 125 Citroen and Jeep vehicles to customers across Kerala to coincide with the Onam festival. The handover involved models from both brand portfolios across the company's regional dealership network.

The deliveries encompassed Citroen models including the Basalt, Aircross, C3 and e-C3, alongside Jeep vehicles including the Compass, Meridian and Wrangler.

Kumar Priyesh, Business Head and Director of Automotive Brands, Stellantis India, said, "Onam is a festival that celebrates togetherness, prosperity and new beginnings, making it a particularly meaningful occasion for customers taking delivery of their new vehicles. We are delighted to celebrate this festive season with 125 Citroen and Jeep customers across Kerala as they begin a new chapter in their mobility journey. The overwhelming response reflects the trust customers place in our brands and our commitment to delivering products that resonate with diverse customer aspirations. Whether it is the adventurous spirit of Jeep or the comfort-centric philosophy of Citroën, both brands are united by a common focus on creating memorable ownership experiences."

The initiative was executed in partnership with local dealer networks across the state, incorporating specific delivery handovers for individual buyers during the holiday period. The volume of handovers reflects ongoing demand across both product lines, which target different vehicle market segments ranging from urban commuters to off-road users.

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JSW MG Motor India, one of the leading passenger vehicle manufacturers, has launched the Hector Tomahawk, the first vehicle built on its Advanced Drive Architecture Platform Technology (ADAPT) platform, with prices starting at INR 1.39 million plus INR 4.90 per km Battery Rental for the Battery-as-a-Service (BaaS) model.

The platform serves as the company's multi-new energy vehicle system in India, supporting both electric vehicle and plug-in hybrid electric vehicle powertrains.

The Hector Tomahawk EV features a 69.2 kWh battery pack paired with an electric motor delivering 150 kW of power and 310 Nm of torque, yielding a certified range of 517 kilometres. The PHEV variant combines a 1.5-litre petrol engine, a dedicated hybrid transmission and a 20.5 kWh battery pack, offering a pure-electric range of over 115 kilometres and a combined range exceeding 1,100 kilometres. It also incorporates vehicle-to-home energy transfer capabilities.

The SUV measures 4,745 mm in length, 1,850 mm in width and 1,770 mm in height, with a 2,810 mm wheelbase and 230 mm of ground clearance at the battery. On the inside, it gets the largest in its segment, a 15.6-inch touchscreen display, an 8.8-inch multi-information display, a panoramic glass roof, Level 2 assistance systems and standard six airbags across all variants.

The Hector Tomahawk PHEV can be had for INR 2.17 million plus INR 3.20 rupees per kilometre battery rental.

For customers looking for an outright purchase, the Hector Tomahawk can be purchased for INR 1.94 million for the EV model and INR 2.56 million for the PHEV model. The deliveries will begin in September 2026 for the EV variant, while PHEV deliveries are scheduled to commence in November 2026.

Parth Jindal, Director, JSW MG Motor India, said, "The Hector Tomahawk represents a significant milestone in our journey toward building a sustainable mobility ecosystem in India. We remain focused on bringing the world's-best available technologies and environmentally responsible solutions to Indian consumers, while supporting the country's transition to cleaner transportation. The introduction of the Hector Tomahawk EV and the Hector Tomahawk PHEV, India's first plug in hybrid electric vehicle (PHEV)^, reflects our commitment to offering a diverse portfolio of new-age mobility solutions that address evolving customer needs and driving patterns.”

Anurag Mehrotra, Managing Director, JSW MG Motor India, said, "The future of mobility will not be defined by a single technology solution but by providing customers the freedom to choose the pathway that best suits their needs. We recently introduced India's First Multi New Energy Vehicle Platform – ADAPT as the foundation for our next generation of products. Today, the Hector Tomahawk becomes the first SUV to bring that vision to life. By offering both EV and Plug-in Hybrid technologies, we are democratising sustainable mobility while addressing the diverse requirements of Indian consumers. The Hector Tomahawk combines intelligent technology, advanced safety, premium comfort and electrified performance, reaffirming our commitment to developing future-ready products for a rapidly evolving automotive landscape."

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