Tata Motors Passenger Vehicles has launched the Aeris compact sedan in India at an introductory ex-showroom price starting at ₹5.29 lakh, as the automaker expects to conclude one year with over 750,000 total vehicle sales. According to MD & CEO Shailesh Chandra, the company would be ending this one year with nearly 750,000-plus sales, which will be significantly higher than what they would have done in the past. The new Aeris replaces the Tigor nameplate, featuring a significantly revised exterior and updated cabin, designed exclusively for the personal segment with contemporary design, new technologies and enhanced comfort. As per CNBC-TV18, the company has introduced the Aries at an introductory ex-showroom price starting at ₹5.29 lakh, with the new model specifically targeting personal buyers in Tier 2 and Tier 3 cities.
Tata Motors Passenger Vehicles is positioning itself for significant market share expansion, with Managing Director and CEO Shailesh Chandra announcing the company expects to cross 15% domestic market share 'very soon' and is working towards its previously stated target of 20% by FY31. The nearly year-old standalone business has demonstrated strong growth momentum, achieving nearly 40% growth over the past year and exiting September with electric vehicles accounting for more than 25% of its total sales. The company has recorded a market share increase of nearly 2-2.5 percent over a one-year period, aided by a boost from GST. The automaker is also on track to sell between 125,000 and 130,000 electric cars in the same timeframe, surpassing its initial target of 100,000 EV sales.
As reported by PTI, Chandra revealed that the passenger vehicle business, which became a standalone entity following the demerger effective October 1, 2025, has grown significantly in its first year. The company expects to have sold nearly 7,50,000 vehicles by the end of the month, marking the completion of one year since the demerger. The business has implemented an aggressive product strategy, with Chandra noting the company has brought numerous refreshes, facelifts and new launches during this period to maintain competitiveness and customer excitement. According to CNBC-TV18, the compact sedan category has grown at 20 percent over the last one to two years, with nearly 3.5 lakh compact sedans being sold, giving the company confidence to offer products in this segment.
On the electric vehicle front, the company remains optimistic about sustainable consumer demand, with electric vehicles expected to reach 125,000 to 130,000 units sold in the last one year, significantly higher than their initial dream of 100,000 cars. According to Chandra, the shift is being driven by the introduction of high-range cars, faster charging capabilities, expanding infrastructure, and regulatory forces such as Corporate Average Fuel Economy (CAFE) standards. While immediate concerns surrounding the Middle East crisis have eased, lingering fears over future petrol price increases continue to push buyers toward EVs. The company sees EV and CNG segments growing much faster than the industry, and fortunately, Tata Motors holds leadership positions in both these segments with higher market share than its overall market share.
According to Chandra's interview with PTI, the company has identified three key growth axes for market share expansion. The first focuses on segments where Tata Motors currently has no presence, such as multi-purpose vehicles (MPVs) and certain lifestyle SUVs. The second axis targets shifting affordability and demand at different price points, where the company plans to introduce exciting white space offerings. The third strategy leverages faster-growing powertrains including EVs and CNG, where the company already holds leadership positions with higher market share than its overall market share. The Aries specifically serves as a major aspirational upgrade for hatchback owners in Tier 2 and Tier 3 cities, where average car purchase prices are lower than mega-cities like Mumbai and Delhi, which hover around ₹16 lakh to ₹17 lakh.
