Tata Motors has witnessed a significant surge in demand for electric vehicles in recent months. According to the company, bookings for EVs have increased by almost 2-2.5 times from previous months. With fuel prices continuing to rise and daily running costs becoming more expensive, many buyers are now shifting towards electric and CNG vehicles.
Just yesterday, Tata Motors launched the updated 2026 Tiago lineup, including petrol, iCNG, and EV forms. The Tiago EV now starts at Rs 6.99 lakh for outright purchase, while petrol versions begin at Rs 4.99 lakh. Notably, Tata has introduced a Battery-as-a-Service (BaaS) option for the EV, dropping the initial cost of entry to an aggressive Rs 4.69 lakh.
The company is now readying itself to ramp up EV production in the coming months. Tata Motors currently produces around 9,000 to 10,000 electric cars every month. That number could soon go up to nearly 15,000 units monthly.
Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said that EV bookings have surged since the West Asian tensions began to impact fuel prices. Buyers are now seriously considering the long-term cost of ownership.
He further added that even a slight increase in petrol prices can impact the monthly budgets of entry-level car buyers. This is prompting many customers to consider EVs and CNG vehicles for their daily driving needs.
EV demand rising quickly
Tata Motors says current demand is much higher than available supply.
- EV bookings up by 2 to 2.5 times
- Monthly EV production around 10,000 units
- Target of nearly 15,000 units soon
- Production increase planned within 3 to 4 months
The company also shared that EV bookings now make up nearly 30 percent of total customer demand.
Supply still a challenge
Tata says factory capacity is not the biggest issue right now. The primary area that requires improvement is supplier support.
Some suppliers already have spare production capacity; others may require investment to increase production lines. The company is now working with vendors to improve supply schedules for batteries and components.
Strong EV market growth
Electric passenger vehicle sales in India have grown strongly this year.
| Segment Detail | Numbers |
|---|---|
| EV market penetration | 5 to 6 percent |
| Expected penetration this year | 8 to 10 percent |
| FY2026 EV retail sales | 200,946 units |
| April 2026 EV sales | 23,163 units |
Tata Motors remained the market leader in electric passenger vehicles with more than 8,500 units sold in April alone.
New Tiago range launched
The updated Tiago lineup comes with three powertrain options.
- Petrol
- iCNG
- Electric
Tata states that hatchbacks are still relevant for the first-time buyers of personal mobility in India. The company believes offering multiple fuel choices in one model range gives buyers more flexibility.
The Tiago EV also continues to appeal to the low-cost EV market, where electric car adoption is still low.