Tata Motors, India’s largest electric car manufacturer, is seeking to quadruple its monthly EV volumes to 8,000-10,000 units, led by the launch of the new Tiago EV. Tata Motors expects to sell 50,000 electric vehicles per year in FY23, putting it on track to generate a billion dollars from its EV business in the coming months.
Tata Motors has already achieved an annualised rate of 55,000 to 60,000 units per annum with the Nexon and Tigor EVs, and with the inclusion of the Tiago EV, the business is targeting an annualised rate of 1 lakh units by FY24.
With the recently released Tiago EV and the Punch EV slated for 2023, Tata Motors is aiming for 1 lakh EV manufacturing in the next 12-18 months, resulting in a company EV penetration of more over 15%. If it can maintain current sales velocity, the EV business might earn between Rs 12,000 and Rs 15,000 crore in revenue, which is nearly similar to the business generated by its conventional car industry just three years ago.
Tata Motors was able to collect over 20,000 bookings for its new entry-level EV within 10 days of unveiling the Tiago EV prices.
Already, about 50,000 prospective consumers have expressed interest in the Tiago EV, with approximately 23% of them being first-time car buyers. While declining to reveal exact volume or revenue figures, Shailesh Chandra, MD of Tata Motors Passenger Electric Mobility, stated that the new Tiago EV will democratise electric vehicles to a much bigger consumer base and that the model has brought in a huge number of new buyers for the company. “From where I am now, the potential is to easily double with the Tiago and the new products that are planned over the next couple of years. We are on an aggressive path of product introduction. With the new product introduction plan, the volumes will surely grow,” says Chandra.
To accommodate the rise in volumes, the firm has already built a network of 4,000 charging stations in collaboration with Tata Power, which is expected to grow to 10,000 stations in the following 18-24 months. The company has already invested $500 million of the USD 1 billion raised, with the remaining $500 million to be invested over the next 12-18 months when the company meets specified objectives.
The Ford facility in Sanand, which it acquired earlier this year, is undergoing final approvals before being retooled to handle both ICE and EV goods. In 18 months, the company intends to begin consolidating its manufacturing presence. The Indian electric car market is expected to reach 2 million units by the end of the decade, and Tata Motors wants to maintain its dominance in the face of increased competition.
The company has aggressively increased EV localisation, and it is continuing to work with numerous suppliers to secure future supply for batteries and other components. “We will work with multiple suppliers. With a diverse product portfolio, we want to ensure that the dependency is not concentrated with few sources,” says Chandra.
While volumes are increasing by orders of magnitude, rising battery prices may pose a danger. After the initial pricing offer expires, the business will raise the prices of Tiago EV. While the precise amount of the price rise has yet to be determined, it is expected to be in the range of Rs 30,000 to 35,000.
According to Chandra, battery prices have risen by 30-35 percent in the last six months but are now levelling out. He confirmed that the Tiago EV costs will rise, although he did not specify how much.
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