Another year is about to end, but for Tata Motors, things have just begun. What with the recent investment of INR 7500 crore by TPG Rise Climate into Tata Motors’ EV subsidiary, the company has garnered quite some attention. We are here to take a look into what exactly is Tata Motors’ Electric Vehicle Plan for the time ahead.
Tata Motors Electric Vehicle Plan 2021:
Tata Motors currently has two electric cars in its portfolio – the Tata Nexon EV and Tata Tigor EV. With just this dual offering, Tata Motors has already emerged as a market leader in the electric car segment in India. Now, under “Project Helio”, it further aims to expand its portfolio and introduce a total of 10 EVs by FY 2026. Tata Motors is planning to invest a whopping INR 15,000 crore in its EV business to support the expansion.
Recently, Tata announced a facelift version of the Tigor EV called the Xpres-T EV, created especially for fleet owners, and is open for pre-booking.
Market and Infrastructure Expansion
To strengthen its EV infrastructure, Tata Motors has set up 700+ charging stations across India. It currently operates in 120 cities and aims to move beyond that under its expansion plan.
To encourage customers to buy EVs in the face of high initial costs, Tata has also introduced a subscription plan where you can pay for the car monthly, at a starting price of INR 12,500 for the Nexon EV. The subscription prices may vary depending on your city and tenure period.
Tata Motors Electric Vehicle Production:
To reduce the costs of manufacturing EVs, Tata Motors aims to increase the localization of various components. Reduced costs will translate to reduced buying prices for the customers, thus encouraging them to switch. Currency, 60% of the components are localized, and Tata aims to increase that to 85% by 2025.
Leveraging the Tata UniEVerse
The Tata Group has a prominent presence across various industries, from food products to manufacturing. To support the EV revolution in India, and being a frontrunner at it, Tata Motors will be leveraging the expertise of other companies in the Tata Group – like Tata Chemicals for the Li-ion batteries used in electric vehicles, Tata Autocomp for component localization, Tata Finance for financial support to promote EV buying, and Croma, for creating customer touchpoints. Tata calls this electric mobility ecosystem as the Tata UniEVerse (and we are mighty impressed by it).
Tata Motors’ electric vehicle plan is impressive, and it is evident from the recent surge in its share prices that hit a 52-week high. The current funding will go into Tata Motors’ EV subsidiary which will be incorporated soon. Tata plans to channel these investments into dedicated EV platforms, accelerate R&D for advanced technologies, and establish a strong charging infrastructure.
Tata Motors certainly seems to be on the right track in India’s EV race, in fact, it is leading it. With the company’s holistic focus on the EV ecosystem and its understanding of the Indian automobile market, we are excited to see what the company unfolds next in its EV journey.