The electric vehicle (EV) market is witnessing remarkable growth not only across the globe but also in India. The country is poised to emerge as the world’s third-largest EV market by 2030. In 2021, India’s EV market witnessed a YoY growth of 168%, and it owes this trend to the government’s policies. The FAME scheme and the PLI-ACC policy have been instrumental in initiating the transition from conventional vehicles to EVs.
The government introduced the scheme to achieve net-zero emissions by 2070. The Tata Group played a significant role in facilitating this transition. Along with the government’s policies, various Tata organizations ensured that the market had competitively affordable EVs along with the necessary infrastructure to support them.
Tata’s Contribution to EV Industry
Tata Group has been contributing significantly to the electric vehicle (EV) industry in India, and Tata Motors is one of the prominent players in this segment with its models such as Nexon. However, Tata Power, another organization under the Tata Group, has also played a vital role in realizing the EV ecosystem in the country. Tata Power has been instrumental in creating the necessary infrastructure for electric vehicles in India. The organization has also been a key player in India’s green revolution, which aims to promote renewable energy sources like solar and wind power.
Apart from Tata Motors and Tata Power, other organizations under the Tata Group have also been actively participating in the EV industry. Tata Passenger Electric Mobility is an extended arm of Tata Motors that focuses exclusively on passenger electric vehicles. The organization has committed to investing $2 billion in the EV sector in the coming years. Tata Chemicals, another Tata Group company, is responsible for manufacturing lithium-ion batteries for EVs. The organization has signed an MoU with the Indian Space Research Organization (ISRO) to explore the manufacturing of lithium-ion batteries and has also partnered with the Center for Materials for Electronics and Technology (C-MET) to develop technologies for recycling these batteries.
Tata Elxsi is a Tata Group company that specializes in design and technology for various sectors, including automobiles, broadcasting, communication, and transportation. The organization is a world leader in its segment and has been assisting Tata Motors with the development of an advanced driver assistance system (ADAS).
Tata’s EV strategy
Tata Motors is now more interested in expanding its electric vehicle category than keeping its 75% market share in the segment. According to Vivek Srivatsa, head of marketing, sales, and service strategy at Tata Passenger Electric Mobility, their priority is the growth of the electric vehicle segment rather than market share.
The EVs accounted for about 5% of total vehicle sales in India between October 2022 and September 2023, as per the Bain & Co. report dated December 7. The same report suggests that this share could grow up to more than 40% of India’s automotive market and make over $100 billion of revenue by 2030.
Tata Passenger Electric Mobility has launched Tata.ev stores in Gurugram, which is a part of its strategy to focus on category expansion and cater solely to EV customers. According to Srivatsa, they need to reinvent how they engage with their customers, as EV customers have different kinds of expectations in terms of buying and post-purchase experience.
According to the statement made by a representative of Tata Motors, Srivatsa, the company took 44 months to sell the first 10,000 units of its electric vehicles (EVs), while it achieved the milestone of selling 50,000 EV units in just 19 months. Srivatsa expressed optimism that the company would be able to sell another 50,000 units within nine months. It is noteworthy that Tata Motors has sold a total of 115,000 electric vehicles since it entered the electric car market in 2020.
The company offers electric variants of four of its petrol and diesel passenger cars, namely the Nexon, Tigor, Tiago, and XPres-T. Srivatsa credited the growth in EV sales to the introduction of new models. He stated that the launch of Tiago EV led to a doubling of sales volumes, while the introduction of EV Max resulted in a significant increase in numbers. The new Nexon EV has also been received positively by the market. Srivatsa further added that the company has several launches planned in the next 12 months.
More e-SUVs
The company has planned to introduce a range of electric sports utility vehicles (e-SUVs) over the next 12-18 months, including the Punch EV, Sierra EV, Harrier EV, and Currv Coupe EV across different segments. While refraining from disclosing any specific dates for their launch, Srivatsa stated that SUVs have been gaining popularity in the Indian market, and the company aims to cater to this demand.
He also expressed confidence in the growth of the EV industry, despite the government’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which provides subsidies to encourage EV sales, concluding in March 2022. According to Srivatsa, the FAME scheme is a temporary measure, and EVs must become self-sustainable without subsidies.
He suggested that the government could aid in developing charging infrastructure and promoting localization to achieve this. Tata Motors aims to achieve net zero carbon emissions by 2040, with EVs making up 50% of total units produced by 2030. Currently, EVs account for only 10% of total passenger vehicle sales.