Tata Motors is expected to surpass the $1 billion revenue mark with its electric vehicle business this fiscal year.
Led by the launch of the new Tiago . tramTata Motors, India’s largest maker of electric cars, is aiming to double its monthly EV production to around 8,000-10,000 units. Tata engine is set to surpass electric vehicle sales of 50,000 units annually in fiscal year 23, which means the company will see billions of dollars in revenue from its electric vehicle business over the next few months.
with Nexon and Tigor tramTata Motors has reached an annual rate of 55,000 to 60,000 units per year, now with the addition of the Tiago EV, the company is looking at an annual rate of 10,000 units in fiscal year 2024.
- Tata is set to reach cross-electric vehicle sales of 50,000 units per year in fiscal year 2023
- ‘Tiago EV to democratize EV for larger customer base’: Shailesh Chandra
Tiago EV to boost Tata’s EV production
Our sister publication Autocar Professional knows that with the newly launched Tiago EV as well as the Punch EV planned for 2023, Tata Motors is aiming to produce 10,000 electric vehicles in the next 12-18 months, which This will result in EV penetration of over 15% for the company. If it manages to maintain sales momentum, the electric vehicle business is likely to generate revenue of around Rs 12,000 crore to Rs 15,000 crore – roughly the same as the conventional auto business it generated in just three years. before.
Within 10 days of the Tiago EV pricing announcement, Tata Motors was able to secure over 20,000 orders for its new entry-level EV. About 50,000 potential buyers have signed up to be interested in the Tiago EV, and about 23% of them are first-time car buyers.
Refusing to share specific numbers on volume or sales, Shailesh Chandra, MD of Tata Motors Passenger Electric Mobility, told Autocar Professional that the new Tiago EV will democratize electric vehicles for a much larger customer base and This model has attracted a lot of new buyers. for company. “From my current position, the potential could easily double with Tiago and new products planned over the next few years. We are on the way to actively introduce the product. With the new product launch plan, the number will definitely increase,” said Chandra.
Tata Motors’ electric vehicle plan
The company has partnered with Tata Power to create a network of 4,000 charging stations, which is expected to surpass 10,000 within the next 18-24 months to support the increase in numbers. Of the $1 billion the company raised, $500 million has already been moved into the business, and the remaining $500 million will be used over the next 12-18 months as the company hits certain milestones.
For the Ford plant in Sanand, which it acquired earlier this year, the company is getting all approvals before retooling the plant to offer both ICE and EV products. The plan is to start consolidating its manufacturing footprint in 18 months. India’s electric vehicles are expected to grow to 2 million units by the end of the decade, and Tata Motors wants to stay ahead of the new competition.
“With 10 products, we are targeting a 25% penetration rate, with more models coming, this rate could also be higher,” adds Chandra.
The company has actively increased the localization of its electric vehicles and continues to work with multiple suppliers to secure future supplies of batteries and critical parts. “We’ll be working with multiple vendors,” Chandra said. “With a diverse product portfolio, we want to make sure that dependency isn’t concentrated on a few sources.”
While volumes are multiplying, rising battery prices could pose a threat. When the first price offer ends, the company will increase the price of the Tiago EV. Although the exact amount of price increase is yet to be determined, it could be between Rs 30,000 and Rs 35,000.
Chandra said battery prices have increased by 30-35% over the past six months, but are currently stabilizing. He confirmed that the Tiago EV price will go up, but the exact amount will be announced soon.
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.EV will be Tata Motors’ new electric sub-brand
