In the rapidly evolving landscape of electric vehicles (EVs) in India, Tata Motors has emerged as a formidable leader, poised for a groundbreaking year in EV sales. As of April to August 2023, the company has already sold 31,911 electric vehicles, accounting for 67% of its total sales for FY2023. With an ambitious target to achieve over 80,000 EV sales in FY2024, Tata Motors is steering toward becoming a major player in the electric vehicle market. On the occasion of World EV Day, let’s explore how Tata Motors is accelerating its EV journey, its product portfolio, market growth, and future plans.
A Trailblazer in the Indian EV Market
Tata Motors made its mark in the Indian EV market by being among the first to introduce electric passenger vehicles for the mass market. This pioneering spirit has propelled Tata Motors to its current position as the market-leading electric passenger vehicle original equipment manufacturer (OEM) in India. While the company faced minimal competition in its early years, its continued success has led to a shift in market dynamics.
Remarkable Growth Trajectory
Tata Motors’ growth in the electric vehicle segment is nothing short of remarkable. In FY2022, the company achieved a retail market share of 84%, which has now slightly dipped to 74.61% as of January to August 2023. This slight decrease can be attributed to the expansion of the electric passenger vehicle market, with both existing and new competitors introducing new models. However, Tata Motors remains the sole carmaker in India to have sold over 100,000 EVs.
Sales Growth Surge
Tata Motors’ EV sales have experienced exponential growth over the past few years. From a total of 19,106 units sold in FY2022, the company saw a staggering 150% increase to 47,792 units in FY2023. This impressive trend continues into FY2024, with 31,911 units sold in just the first five months, marking an 81% year-on-year increase. At this pace, Tata Motors is on track to add another 50,000-55,000 EVs by the end of FY2024, reaching the 85,000-unit milestone.
Diverse EV Portfolio
One of the key factors driving Tata Motors’ success in the EV market is its diverse portfolio of electric vehicles. The company offers electric variants across three body styles: sedan, SUV, and hatchback, catering to both premium and mass-market segments. This strategy has been instrumental in increasing EV penetration in Tata Motors’ overall passenger vehicle sales. As of April to August 2023, EVs account for 13.63% of the company’s total passenger vehicle sales, up from a mere 2% in FY2021.
Product Offering and Market Coverage
Tata Motors has strategically expanded its EV product range to capture a wider audience. The Nexon EV, which continues to be in high demand, paved the way for the introduction of more affordable models like the Tiago EV. Fleet operators are showing increasing interest in these cost-effective EVs, further boosting Tata Motors’ sales. In FY2023, the company signed agreements with three fleet operators for a total of 45,000 Xpres-T sedans, demonstrating the growing demand for electric fleet vehicles.
Looking ahead, Tata Motors is set to launch the Punch EV later this year, adding another electric SUV to its lineup. Furthermore, the company surprised the industry with three exciting EV concepts unveiled at Auto Expo 2023: the Harrier EV, Sierra EV, and Avinya. The Harrier EV, presented in a close-to-production form, is scheduled for release in 2024. Tata Motors aims to maintain its momentum by providing India-specific EVs with different body styles, driving ranges, and price points, with plans to deliver 10 EV models by 2026.
Investment and Capacity Expansion
To solidify its position in the EV market, Tata Motors committed to investing $2 billion (approximately Rs 16,500 crore) in its EV business over a five-year period, starting in 2022. The recent acquisition of Ford India’s plant in Sanand, Gujarat, has significantly increased Tata Motors’ manufacturing capacity. This plant can produce up to 300,000 units per annum, expandable to 420,000 units per annum, ensuring that the company can meet the growing demand for its EVs.
Charging Infrastructure and Partnerships
Tata Power, a subsidiary of the Tata Group, has played a crucial role in expanding the EV charging infrastructure in India. The company’s EZ Charge App boasts over 15,000 registered users and plans to set up around 7,000 charging points in FY2024, with a long-term goal of 25,000 by FY2028. Tata Power has also introduced AC fast chargers for the Nexon EV Max and Tiago EV, catering to both home and public charging needs.
Market Coverage and Synergies within the Tata Group
In parallel with its growing sales, Tata Motors has expanded its market coverage to reach 165 cities in India, a substantial increase from 75 in FY2022 and 51 in FY2021. This expansion was facilitated by partnerships with 250 dealerships in FY2023, a 75% year-on-year increase from 143 showrooms in FY2022 and 97 in FY2021.
Tata Motors’ success in the EV market is further bolstered by its close collaborations with various Tata Group companies, including Tata Power, Tata Chemicals, Tata Autocomp, TCS, Tata Digital, Tata Elxsi, and Tata Motors Finance. This ecosystem approach has enabled the localization of key EV powertrain components, setting the stage for deeper localization of components like battery packs, motors, and 3-in-1 combo boxes.
Tata Motors has set ambitious goals for the future. The company aims to increase the EV contribution to its overall passenger vehicle portfolio to 25% in the next five years and ultimately reach a remarkable 50% by 2030. With the launch of the new Nexon EV and the upcoming Punch EV, Tata Motors is committed to maintaining its leadership position in the Indian electric vehicle market.
Tata Motors’ remarkable journey in the electric vehicle market in India is a testament to its vision, innovation, and commitment to sustainable mobility. As the company races towards record-breaking electric vehicle sales in FY2024, it continues to redefine the automotive landscape in the country. With a diverse portfolio, strategic investments, and a growing charging infrastructure, Tata Motors is poised to play a pivotal role in India’s electric vehicle revolution, setting new standards for the industry and contributing to a greener, more sustainable future.
Article source:- Autocar professional