Tata Motors plans to add multiple new nameplates and expand its passenger vehicle range to 15 models by the end of the decade as it prepares for monthly production of up to 1 lakh units from FY28. The company has reportedly asked suppliers to build capacity for that output level which sits well above its recent monthly sales base of around 65,000 units. The next-gen Nexon and models from the flagship Avinya series are scheduled for 2027.
The expansion is backed by planned expenditure of Rs. 37,500 crore to Rs. 40,000 crore between FY27 and FY31. The company has set an annual passenger vehicle sales target above 12 lakh units by FY31 and wants a 20 per cent share of the domestic market. The manufacturing network is expected to support capacity equivalent to around 13 lakh vehicles a year during the same period.
The production requirement was confirmed to suppliers at a conference in Pune in September 2026 according to a report. The company has scheduled around 75,000 vehicles a month during the past three months but component availability has restricted factories from consistently achieving that figure. The supplier expansion planned for FY28 would create room for another 25,000 vehicles a month over that scheduled level.
The recent sales numbers show the size of the planned increase. Tata Motors averaged around 65,000 passenger vehicles a month during the first six months of this FY and it has an estimated current monthly sales potential at another 7,000 to 8,000 units above the figure. The proposed 1 lakh monthly output level may stand more than 50 per cent above the first half FY27 average.
The arrival of multiple new nameplates will also reduce Tata Motors’ dependence on existing high volume products. The company plans to enter additional vehicle categories as the portfolio grows and the third generation Nexon plus Avinya models are already set to arrive alongside other models. The Aeris sedan has been another recent addition.
The domestic PV market is also expected to become considerably larger by FY31. Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, has projected industry volumes to rise from 47 lakh units in FY26 to 64 lakh units by FY31. If Tata reaches that level, it will become only the second passenger vehicle manufacturer in India after Maruti Suzuki to operate above 1 lakh units a month.
