Tata Motors Passenger Vehicles Plans New Overseas Market by FY28

Tata Motors Targets Another Major Overseas Market

Tata Motors Passenger Vehicles international expansion is set to enter another major overseas market by the end of FY27 or early FY28, as the company broadens its strategy across internal combustion engine and electric vehicles. Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said during a media call on the company’s Q1 performance that “There will be either at the end of this financial year or maybe early next financial year we will open another big market.” He added that “We have in the next two to three years some key focus markets identified... which would be ICE-focused markets as well as EV-focused markets.” The comments establish a clearer timeline for the next phase of global expansion.

International Strategy Covers ICE and EV Markets

The broader international strategy follows comments from Tata Group Chairman N. Chandrasekaran at the company’s annual general meeting in July. He said Tata Motors would deepen its presence in South Africa while exploring opportunities in Australia and Malaysia, with the UK and Europe also receiving closer attention. The approach combines markets where Tata Motors already has products suited to local demand with developed markets where its growing electric vehicle portfolio could provide a stronger entry proposition. The earlier strategy also pointed toward right-hand-drive markets such as South Africa, Australia and Malaysia, where the company’s existing product portfolio is better aligned with vehicle configuration requirements.

UK Entry Preparations Advance

The United Kingdom could become an important part of Tata Motors’ EV-led international expansion. The company has already started work toward a potential UK entry, including vehicle certification and preparations for a sales and service network. These preparations are intended to position Tata Motors for opportunities to export electric vehicles duty-free, although the company has not yet disclosed specific sales targets, investment levels or a firm market-entry date for the UK or wider Europe. Tata Motors Passenger Vehicles Ltd is expected to provide additional details as the identified opportunities move closer to execution, indicating that the current activity remains part of a staged preparation process rather than a formally announced launch.

South Africa Drives Current Export Growth

South Africa is currently the main driver of Tata Motors Passenger Vehicles’ overseas growth. The company returned to the South African passenger vehicle market in 2025 and has since expanded both its product portfolio and dealership footprint through its partnership with Motus Holdings. Current offerings include the Punch, Curvv, Harrier and Tiago. Shailesh Chandra said the expansion in South Africa is the primary reason for the sharp increase in exports, noting that the company has continued adding products and outlets since reopening the market. South Africa also remains central to the wider strategy outlined by N. Chandrasekaran, alongside potential opportunities in Australia and Malaysia.

International Sales More Than Double in Q1 FY27

The scale of the current export acceleration is visible in Tata Motors Passenger Vehicles’ Q1 FY27 results. The automaker sold 2,408 passenger vehicles in international markets during the quarter, a 148% increase from 970 units a year earlier. Domestic wholesales increased 45% to 1,80,166 units from 1,23,839 units, while total passenger vehicle sales across domestic and international markets rose 46% to 1,82,574 units. EV sales across both markets more than doubled to 34,467 units. Despite this growth, international sales represented only about 1.3% of Q1 passenger vehicle volumes, showing that overseas operations are expanding rapidly from a relatively small base.

Global Expansion Continues Alongside India Growth

The international push is being pursued alongside an ambitious domestic growth strategy. Tata Motors is targeting a 20% share of India’s passenger vehicle market by FY31, compared with around 14% currently, supported by six new nameplates and more than 20 product interventions. The company has also outlined investment of approximately ₹40,000 crore in domestic automotive operations over five years. At the group level, Tata Group is targeting automotive revenue of about $100 billion by FY31 across Tata Motors’ passenger and commercial vehicle businesses and JLR. Together, these plans indicate that overseas expansion is being positioned as an additional growth avenue rather than a substitute for Tata Motors’ investment and product expansion in India.

Frequently Asked Questions

When will Tata Motors Passenger Vehicles enter another major overseas market?
Tata Motors Passenger Vehicles is targeting another major overseas market by the end of FY27 or early FY28, with both ICE and EV-focused markets under consideration. The company has identified several focus markets covering internal combustion engine and electric vehicle opportunities. South Africa, Australia and Malaysia are among the markets highlighted, while the UK and Europe are also being evaluated. No final market name, investment amount or sales target has been announced. Shailesh Chandra said further details would be provided as Tata Motors moves closer to entering the identified market.

Which market is currently driving Tata Motors Passenger Vehicles’ exports?
South Africa is currently driving Tata Motors Passenger Vehicles’ international growth, supported by expanded products and a growing dealership network. Tata Motors returned to the South African passenger vehicle market in 2025 and has since expanded its product range and dealership footprint through its partnership with Motus Holdings. The company currently sells the Punch, Curvv, Harrier and Tiago in the market. Management has attributed the sharp increase in exports primarily to this expansion. South Africa also remains a key part of the broader international strategy, alongside potential opportunities in Australia and Malaysia.

How strongly did Tata Motors Passenger Vehicles’ international sales grow in Q1 FY27?
Tata Motors Passenger Vehicles sold 2,408 international passenger vehicles in Q1 FY27, up 148% from 970 units a year earlier, while EV sales more than doubled. International volumes therefore remain relatively small compared with domestic sales, but the growth rate is significant. Domestic wholesales reached 1,80,166 units, up 45%, while total passenger vehicle sales increased 46% to 1,82,574 units. EV sales across domestic and international markets reached 34,467 units, more than double the previous year. International sales represented around 1.3% of Tata Motors Passenger Vehicles’ Q1 volume, indicating substantial room for future overseas expansion.