Tata to double yearly EV production to 50,000 units

With its electric vehicle business, Tata Motors expects to surpass USD 1 billion in revenue this financial year.

Highlights

• In FY23, Tata plans to sell more than 50,000 electric vehicles yearly.

• "Tiago EV will democratise EVs to a bigger user base, says Shailesh Chandra"

Driven by the introduction of the new Tiago EV Tata Motors, the leading manufacturer of electric vehicles in India, aims to raise its monthly EV volumes to between 8,000 and 10,000 units. Tata Motors is on track to generate a billion dollars income from its EV business in the upcoming few months as it expects to surpass EV sales of 50,000 units annually in FY23.

With the inclusion of the Tiago EV, Tata Motors expects to attain an annualised rate of 1 lakh units by FY24 after previously reaching a rate of 55,000 to 60,000 units per year with the Nexon and Tigor EVs.

Tiago EV to increase Tata's EV output

With the recently released Tiago EV and the Punch EV scheduled for 2023, Tata Motors is aiming for 1 lakh manufacturing of EVs in the next 12 to 18 months, which will result in an EV penetration of over 15% for the firm.The projected income range for the EV sector is between Rs 12,000 and Rs 15,000 crore, which is roughly on par with what the conventional car business produced just three years ago if it can maintain the sales momentum.

Tata Motors was successful in securing more than 20,000 reservations for its new entry-level EV within 10 days of publicising the Tiago EV prices. About 50,000 potential consumers have already expressed interest in the Tiago EV, and 23% of them are first-time automobile purchasers.The new Tiago EV will democratise electric vehicles to a much larger customer base, according to Shailesh Chandra, MD of Tata Motors Passenger Electric Mobility, who declined to provide specific figures on volumes or revenues. The model has also brought in a lot of new customers 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.

EV plans from Tata Motors

In collaboration with Tata Power, the company has already built a network of 4,000 charging stations; to support the rise in volume, the network is expected to reach 10,000 stations in the next 18 to 24 months. Of the USD 1 billion the company raised, $500 million has already been invested in the company's operations, and the remaining $500 million will be invested over the next 12 to 18 months when the business hits specific milestones.

The corporation is obtaining the necessary licences for the Ford factory in Sanand that it recently acquired before retooling the facility to accept both ICE and EV goods. In 18 months, it is anticipated to begin consolidating its manufacturing footprint.By the end of the decade, there are expected to be 2 million electric vehicles sold in India, and Tata Motors aims to maintain its position as the market leader despite incoming competition.

"We are aiming for a 25% penetration with 10 items; with more models coming in, it might be higher too," adds Chandra.

The corporation has been actively boosting localization for its electric vehicles, and it keeps in touch with a variety of suppliers to safeguard its future sources for batteries and essential parts. "We'll collaborate with a number of providers. We want to make sure that the dependence is not concentrated with a few sources by having a wide range of products "affirms Chandra.Although the volumes are multiplying, the threat posed by rising battery prices is real. The business will raise the cost of the Tiago EV when the initial pricing offer expires. While the precise amount of the price rise is yet to be determined, it may be between Rs 30,000 and 35,000.

According to Chandra, battery prices have increased by 30 to 35 percent over the past six months but are now levelling out. He declared that the Tiago EV prices would increase; however, the precise sum would soon be revealed

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