With the introduction of the entry-level e-SUV, Tata Motors’ electric vehicles portfolio now stands at four products: the Tiago EV, Tigor EV, Nexon EV, and Punch EV. This will enable the company to take advantage of another gap in the growing electric vehicle section of the Indian passenger car market with an all-around offering. The Punch EV is expected to have waiting periods, but the company is prepared to increase capacity at its recently operational plant in Sanand, Gujarat, in order to control delivery times and keep them within reasonable bounds.
Tata Motors EV growth rate
Tata Motors anticipates that by the end of CY24, the portfolio’s Electric vehicles volume contribution which is currently estimated to be between 12 and 15 percent (17 and 20 percent in terms of revenues will have increased to 15 to 17 percent. Two additional models, the Curvv EV and Harrier EV, are scheduled to go on sale this year. Next year, the Sierra EV and Altroz EV will be added to the company’s roster of electric vehicles.
As Electric vehicles sales established a solid foundation in CY23, the business expects the industry’s Electric vehicles growth rate to level down in the future. The Electric vehicles market was expanding at a slow pace two years ago, with growth rates between 100 and 150 percent; CY23 ended with a YoY growth rate of around 100 percent. However, the industry for electric vehicles will establish a base of approximately 100,000 units by the end of FY24, meaning that future growth would likely reduce to between 40 and 45 percent.
Tata Motors claims that its investment in Electric vehicles has increased several times over with the changeover to Gen-2 ground-up EV architecture with the Punch.ev, although this is occurring at a time when the company’s ELECTRIC Vehicles volumes have reached a particular level. This guarantees that we do not destroy value and provides new capabilities, chiefly the ability to deliver higher-end products in a smaller package, such as the Punch EV.
Tata Motors feels that the Punch EV, which targets youthful buyers looking for an all-arounder, is strategically positioned in its lineup between the Tiago EV and Nexon EV. If one offers a high-value product, it will undoubtedly create a new market for this type of Electric vehicle, which, with its over 400km range, does not limit the car to city use. Nearly 65 percent of buyers are under 35, tech-savvy, and have a specific price point in mind. With the former being utilized as a primary car in a multi-car household and the later being a 320km-range product mostly used within the city with limited outside activities, the customer bases for the Nexon and Tiago EVs are significantly different.
