Electric vehicles now account for about 25% of Tata Motors Passenger Vehicles’ sales, up from 14% a year ago, as demand for electric cars continues to exceed the company’s available supply.

Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said EV penetration has rapidly reached 25%. He added that the share has remained around this level partly because the company has been unable to increase supply quickly enough to meet demand.

Tata Motors, India’s largest electric car maker, has also expanded its EV production capacity significantly. Its capacity has increased from around 8,000 units a year ago to more than 16,000 units currently.

The company’s EV bookings have also strengthened, with Chandra saying electric vehicles now account for about 30% of Tata Motors Passenger Vehicles’ total bookings.

The increase in EV sales highlights the growing contribution of electric models to Tata Motors’ passenger vehicle business. However, the company’s comments also point to supply capacity as a factor limiting further growth in EV penetration.