With billions of dollars in funding from TPG Capitals and a new range of models, Tata Motors wants to take the lead in the electric vehicle (EV) race as quickly as possible. According to Tata Motors sources, the company has appealed to vendors for a guaranteed production plan of 50,000 EVs in FY2023 and will increase it to 1,25,000-1,50,000 units annually over the next two years. If it manages to achieve this goal, Tata Motors could earn Rs 5,000 crore from the EV business in FY23 alone, justifying the fact that the company has raised its stake in the private equity fund (PE) EV business.
The maker of the Nexon EV is confident of scaling upon its early advantage with bookings for 15,000 vehicles and plans of launching three affordable electric cars in the sub-Rs 10 lakh range in the coming 12-18 months.
Apart from a new Nexon EV with a higher range (mileage), Tata Motors has lined up an all-new Tiago EV, as well as the electric versions of the Punch small SUV and Altroz hatchback in the under-Rs 10 lakh range, which will likely bring in new prospective buyers over the next two years. The company’s EVs are expected to offer 200 km per full charge minimum.
Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said the company will keep escalating into new cities and by adding products to increase accessibility, but he did not share any detail.
Chandra said, “We will be launching one or two products every year, which will be at different price points to increase affordability. Nexon is our core. Today, you will see the action below Nexon as well as above the product in the coming years.”
He reiterated that the long-term vision of the company is to make 20% of its total sales from electric vehicles.
Tata Motors Chairman had proclaimed plans of launching 10 EVs by FY26, in his address to shareholders in FY21. Meanwhile, passenger vehicle market leaders like Maruti Suzuki and Hyundai Motor India aren’t expected to launch mainstream EVs before 2024-25 in India which means less competition for Tata Motors at least until then.
In fiscal 2020, the share of electric vehicles in Tata Motors’ total passenger vehicle volume was 0.2% which has risen to 5.6% in December 2021. At 50,000 units, this could top 12% of its total targeted volumes in FY 2023.