Tata Motors is taking an early lead in the electric vehicles race with a plan to produce 50,000 EVs in the next fiscal year starting April.
The company has sounded out vendors on an assured production plan of 50,000 EVs in fiscal 2023 and scale it up to 125,000-150,000 units annually in the following two years.
If it is able to deliver on the targets, the EV business could potentially generate revenue of Rs 5,000 crore for Tata Motors in FY23 itself.
EV Products of Tata
Talking about the sales of Nexon EV it has already crossed the bookings of 15,000 units.
Tata Motors also have plans of launching three affordable electric cars in the range of nearly Rs 10 lakh in the coming 12-18 months.
Apart from a new Nexon EV with a higher range (mileage), Tata Motors has lined up an all-new Tiago EV, as well as the electric versions of the Punch small SUV and Altroz hatchback in the under-Rs 10 lakh range, which will likely bring in new buyers over the next two years.
The company’s EVs are expected to offer a minimum range of 200 kms per full charge.
Upcoming Plan
Tata Motors chairman had announced plans of launching 10 EVs by FY26, in his address to shareholders in FY21.
He declined to give any guidance on the production and the sales plan, but reiterated that the long-term vision of the company is to make 20% of its total sales from electric vehicles.
Meanwhile, passenger vehicle market leaders Maruti Suzuki and Hyundai Motor India aren’t expected to launch mainstream EVs in India before 2024-25, which means less competition for Tata Motors at least until then.
Market Share
The company’s market share in EVs has jumped from 18% in FY19 to 82% at the end of 2021.
Tata Motors sold 350 EVs in FY19, which increased to 1,300 the following fiscal year and to 4,200 in FY21.
Its EV volume in the ongoing FY22 is expected to be 17,000-18,000 units.
In the first nine months of FY22, Tata Motors sold around 10,000 EVs.
The demand is higher in states such as Gujarat and Maharashtra where government policies result in additional demand incentives.
The company is also seeking to open more dealerships to sell EVs.
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