Tata Motors PV CEO Forecasts Double-Digit 2026 Growth on SUV Demand
Overview
Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra anticipates India's passenger vehicle sales to grow about 10% in 2026, driven by robust SUV demand post-GST reforms. He projects Tata Motors to achieve industry-beating growth through an aggressive product launch strategy, including new Punch variants and updated Safari/Harrier models, aiming to solidify its No. 2 market position.
Stocks Mentioned
Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles (TMPV), forecasts Indian passenger vehicle (PV) sales to surge approximately 10% in 2026, a growth trajectory powered by escalating demand for SUVs and sustained momentum from Goods and Services Tax (GST) rate adjustments. Chandra expressed confidence that TMPV will significantly outpace industry expansion this calendar year, supported by a packed launch schedule and the market reception of key models.
Industry Outlook
Chandra highlighted the significant turnaround in the industry. "The first eight months of 2025 were a decline for the industry (passenger vehicles), whereas post GST (reforms), it has been upwards of 20 per cent growth," he noted, observing sustained double-digit growth rates for the past four to five months. He optimistically projects that even with stabilization, the industry can achieve "double digit, 10 per cent plus minus two" growth for 2026.
Tata Motors' Strategy
For Tata Motors Passenger Vehicles, 2026 is earmarked for an "intense (product) launch calendar year." Chandra asserted, "I believe that we will be doing industry-beating growth." Supplies for crucial products, including the new Punch, Sierra, and petrol variants of the Safari and Harrier SUVs, are set to commence this month. These launches, alongside a pipeline of new models throughout the year, are expected to drive this accelerated growth. The company exited 2025 strongly, securing the second position in VAHAN rankings for Q3 FY25.
SUV Segment Dominance
The CEO emphasized the burgeoning demand for SUVs, which have outperformed cars post-GST 2.0. All sub-segments of the SUV market – mid-size, compact, and sub-compact – are performing exceptionally well. The sub-compact SUV segment, in particular, has been a major beneficiary of GST 2.0, experiencing growth rates of 70-80% following a 10% price reduction due to tax cuts. This segment, where the new Tata Punch competes, has expanded from monthly sales of 20,000 units to 40,000, with potential to reach 50,000 units. Chandra stated the new Punch, with its enhanced value, contemporary features, and powertrain options, is poised to be a market winner.
