Tata Motors Smashes Records with 50% EV Sales Growth in Q3 FY26

Tata Motors Passenger Vehicles Ltd. has once again solidified its dominance in the Indian electric vehicle sector, reporting a staggering 49.5% year-on-year growth in EV sales for Q3 FY26 (October–December 2025).

In a quarter defined by major product offensives and strategic market corrections, the homegrown auto giant sold 24,103 electric vehicles, up significantly from 16,119 units in the same period last fiscal year.

Highest-Ever Annual EV Volumes

The surge in the third quarter pushed Tata Motors to achieve a historic milestone. The company recorded its highest-ever annual EV volumes, closing Calendar Year 2025 with 81,125 units sold.

Mr. Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles Ltd., attributed this success to a shift in consumer preference toward cleaner powertrains and the company's aggressive multi-powertrain strategy.

"EV adoption accelerated significantly, supported by enhanced capabilities, longer range, lifetime battery warranty, and price parity with ICE counterparts," said Chandra.

The 'Sierra' Factor and Product Strategy

A key highlight of Q3 FY26 was the launch of the highly anticipated Tata Sierra, which the company states has been "exceptionally well received." The return of the legendary nameplate, now in a modern avatar, has injected fresh excitement into Tata's portfolio.

Furthermore, the company’s strategy to achieve price parity between EVs and Internal Combustion Engine (ICE) vehicles appears to be paying off. By removing the upfront cost barrier—historically the biggest hurdle for EV adoption in India—Tata Motors has unlocked a new wave of demand. This is further bolstered by the introduction of a lifetime battery warranty, a move aimed directly at alleviating long-term ownership anxieties.

Inventory and Market Health

Beyond sales figures, Tata Motors demonstrated strong operational health. Retail sales for the quarter significantly exceeded wholesales, driving dealer inventory down to approximately 18 days. This lean inventory indicates strong ground-level demand, distinguishing Tata Motors in a market often plagued by overstocking issues.

Future Outlook

Looking ahead to the final quarter of FY26, Tata Motors remains bullish. With the deliveries of recently launched products commencing in Q4 and a robust pipeline of new innovations, the company is well-poised to maintain its leadership trajectory.

For the Indian EV industry, Tata's Q3 performance serves as a strong indicator that 2026 will be a year of mass adoption, driven not just by subsidies, but by competitive pricing and superior product value.