Tata Group is considering establishing plants in India and Europe to manufacture battery cells for Electric Vehicles (EVs). With 50,000 electric vehicle sales to date, India’s Tata Motors dominates the country’s EV market and has announced plans to launch ten electric vehicles by March 2026. Electric vehicles are expected to account for a quarter of total sales by 2025, up from around 8% now.
Tata Motors’ P.B. Balaji said on the sidelines of India’s Auto Expo car show in Greater Noida, Uttar Pradesh, that localising cell manufacturing for EV batteries is critical to increasing local components in electric cars and will also help the automaker develop a local supply chain.
Tata Group is considering two production bases, one of which is in Europe, to meet the battery cell needs of its luxury car unit Jaguar Land Rover, which has a manufacturing facility there.
Balaji stated that its parent company Tata Sons will invest in cell manufacturing, but did not specify the amount or timeline. India’s car market, which is set to become the world’s third largest, is tiny in comparison to its population, with electric models accounting for only 1% of total car sales of about 3.8 million last year, but the government hopes to increase this to 30% by 2030.
The Indian conglomerate expects its EV business to be cash flow positive by 2025, and the company is also focused on increasing profitability, according to Balaji. Tata’s new models will have a longer driving range and higher price points as the company seeks to maintain its lead at a time when rivals such as Mahindra & Mahindra, Warren Buffet-backed BYD, and SAIC Motor’s MG Motors are planning EV launches.
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