In much-needed relief, Tata Motors has shattered its own records with September 2025 emerging as the company’s best-ever month for EV shipments, dispatching 9,191 units – a staggering 96% year-on-year surge in a month when key competitor JSW MG Motor reported a sharp month-on-month decline in EV shipments. This is in contrast to the slowing trend seen in Tata Motors’ EV sales and shipments in the early part of the year.
This achievement comes as the company’s quarterly EV performance hit nearly 25,000 units in Q2 FY26, marking a 59% year-on-year growth and contributing a record 17% to overall passenger vehicle sales.
The September milestone represents the culmination of sustained momentum that has been building throughout 2025. Just a month earlier, in August 2025, Tata Motors had crossed the 8,000-unit mark for the first time in its EV journey, dispatching 8,540 units with 44% year-on-year growth. That achievement had already surpassed the previous high of 7,124 units in July 2025, making it three consecutive months of record-breaking performance.
The remarkable acceleration in EV shipments becomes even more significant when viewed against the backdrop of Tata’s overall passenger vehicle performance. While total PV sales faced headwinds in August due to GST speculation, the EV segment continued its upward trajectory, with electric vehicles accounting for 21% of Tata’s total passenger vehicle sales in August and over 15% in September – the highest penetration rates ever recorded by the company.
The Harrier EV Effect
The primary catalyst behind this explosive growth has been the successful launch of the Harrier EV in June 2025. Priced starting at Rs 21.49 lakh (ex-showroom), the Harrier EV represents a watershed moment for Tata’s electric ambitions, being India’s first mass-market electric SUV to offer all-wheel drive capability. Built on Tata’s advanced Acti.ev Gen 2 platform, the vehicle boasts a claimed ARAI-certified range of 627 km, with real-world range between 480-505 km.
The Harrier EV’s market reception has exceeded expectations, particularly for its Adventure variants which are experiencing extended waiting periods of up to two months as of August 2025.
The vehicle’s combination of dual motor AWD setup producing 390bhp and 505Nm torque, coupled with features like Vehicle-to-Load (3.3 kW) and Vehicle-to-Vehicle (5 kW) capabilities, has positioned it as a genuine alternative to traditional ICE SUVs rather than just an electric variant.
The premium positioning is evident in its feature set, including a 14.5-inch Samsung Neo QLED touchscreen, JBL Black audio system with Dolby Atmos, Level 2 ADAS, self-parking mode with summon capability, and 540-degree surround view camera.
The vehicle even successfully completed the challenging Elephant Rock ascent in Kerala, tackling a 34-degree incline at 3,937 feet elevation, demonstrating its off-road capabilities with terrain modes including Rock Crawl, Mud Ruts, Snow & Grass, and Sand.
Tata’s current all-electric lineup has evolved into a comprehensive portfolio of six models, each targeting different market segments:
Harrier EV (Rs 21.49-30.23 lakh): The flagship AWD electric SUV
Curvv EV: The coupe-SUV built on the Acti.ev platform
Nexon EV: The volume driver that continues to see strong demand
Punch EV: The compact SUV that launched in 2024
Tiago EV: The affordable hatchback launched in 2022
Tigor EV: The electric sedan, now in its updated avatar
This diverse portfolio strategy has allowed Tata to capture different price points and customer preferences. The Nexon EV, in particular, has been a consistent performer, while the newer Punch EV has quickly gained traction in the compact SUV segment.
The recent addition of new color options like Supernova Copper and Pure Grey for the Punch EV demonstrates Tata’s commitment to keeping its EV lineup fresh and appealing.
Market Dynamics: Retail Trends
While Tata’s wholesale shipments tell one part of the story, the underlying retail trends provide additional context for the EV surge. According to industry data, India’s passenger EV market hit a new high in August 2025, with Tata Motors commanding approximately 41% market share despite increased competition.
The company’s retail performance has been particularly strong, with the Harrier EV alone generating over 25,000 customer enquiries at dealerships on the day GST 2.0 was implemented.
The retail momentum has been building steadily throughout the year. In August, despite overall passenger vehicle sales declining 7% year-on-year to 41,001 units due to GST speculation, EV sales bucked the trend with their 44% growth. This divergence highlights a fundamental shift in consumer preference, with electric vehicles increasingly being viewed as mainstream rather than niche alternatives.
Tata’s record-breaking performance comes amid intensifying competition in the Indian EV market. JSW MG Motor India and Mahindra & Mahindra have both launched new electric models in the past year, collectively impacting Tata’s once-dominant market share.
MG’s Windsor EV has emerged as a strong competitor in certain segments, while Mahindra’s upcoming BE 6 and XEV 9e are expected to further heat up competition.
The competitive landscape has forced Tata to accelerate its innovation cycle.
The company’s shift from the Gen-1 Ziptron technology platform to the more advanced Acti.ev Gen 2 architecture demonstrates this urgency. The Acti.ev platform, designed purely for EVs, offers significant advantages in terms of packaging efficiency, performance, and range – crucial factors in winning over traditional ICE vehicle buyers.
One significant advantage for Tata’s EV division has been the unchanged tax treatment under GST 2.0. While small ICE cars saw their GST rates reduced from 28% to 18%, electric vehicles continued to enjoy the concessional 5% GST rate with no compensation cess.
This maintained tax differential ensures EVs remain competitively priced despite the benefits now extended to small conventional cars. The stability in EV taxation policy has provided confidence to both manufacturers and consumers.
For Tata Motors, it means their pricing strategy remains intact, while for consumers, the continued tax benefits make the total cost of ownership calculation increasingly favorable for electric vehicles.
Tata Motors is currently riding a strong wave of success, and several factors indicate that this momentum could be sustainable. The company has an exciting product pipeline, with more EV launches on the horizon, including potential electric versions of its popular models.
Advances in battery technology, along with the possibility of local cell manufacturing, could help further reduce costs. On top of this, continued government support through FAME schemes and various state-level incentives strengthens the growth outlook.
The rapid expansion of public charging infrastructure is addressing range anxiety, while growing environmental awareness and a favorable total cost of ownership are driving consumer acceptance. Together, these elements present both challenges and opportunities as Tata Motors looks to consolidate its leadership in the electric vehicle space.
Despite the record performance, challenges remain. The average waiting period for popular models like the Harrier EV stretching to two months indicates potential lost sales due to supply constraints.
Competition is intensifying with new entrants and established players launching compelling products. The need to maintain market leadership while improving profitability remains a delicate balance.
However, opportunities abound. The passenger EV market in India is still in its nascent stage, with penetration below 5% of total passenger vehicle sales. As battery costs continue to decline and charging infrastructure expands, the addressable market will grow exponentially. Tata’s first-mover advantage, comprehensive portfolio, and established brand trust position it well to capture this growth.
The September 2025 milestone of 9,191 units shipped represents more than just a number – it symbolizes the transition of electric vehicles from an experimental niche to a mainstream choice for Indian consumers.
With quarterly shipments approaching 25,000 units and contributing 17% to Tata’s total passenger vehicle sales, Tata Motors’ EV division has evolved from a future bet to a present reality.
As India accelerates toward its electric mobility goals and consumers increasingly embrace sustainable transportation, Tata Motors’ record-breaking performance in September 2025 may well be remembered as the inflection point when electric vehicles truly arrived in the Indian automotive mainstream.
The challenge now is not whether EVs will succeed, but how quickly Tata can scale to meet the surging demand while maintaining its market leadership in an increasingly competitive landscape.