Tata Motors to invest Rs 15,000 crore over next 4 years to launch 10 new electric vehicles
Tata Motors is ramping up capacity for electric vehicles as it expects clean energy vehicles to generate 20 per cent of all sales in the next 4-5 years.
Tata Motors to invest Rs 15,000 crore over next 4 years to launch 10 new electric vehicles. | Photo Credit: BCCL
New Delhi: Tata Motors, India’s largest vehicle maker, is reportedly all set to pump in up to $2 billion (Rs 15,000 crore) over the next four years to roll out 10 new electric vehicles (EVs) just as its passenger vehicles unit—which was in the red a few years ago—hopes to improve and generate free cash flow by 2022-23.
It is important to note that EV adoption has gone up in India over the last five years, and Tata Motors’ strategic focus on EVs also comes amid push from investors to support environmentally sustainable businesses.
The move assumes significance in the wake of private equity firm TPG Rise Climate decision to infuse $1 billion in Tata Motors’s passenger electric vehicles unit at a valuation of $9.1 billion. Shailesh Chandra, president of Tata Motors’s passenger vehicles business unit, said the auto major has a strong product launch plan for EVs, with expectations of 20 per cent sales coming from green powertrains over four to five years.
“With just two green products right now (Nexon and Tigor EVs), we are getting bookings of 3,000-3,500 units per month. However, we are able to supply only around 1,000 units… We are now lining up new investments to the tune of $2 billion just for electrics and this would be used to add 10 new green vehicles, boost production capacity and charging infrastructure, and create IP (intellectual property),” Chandra told ToI.
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Last month, Tata Motors recorded a remarkable feat of on-boarding its 10,000th EV customer. With over 70 per cent market share (year-to-date FY22), Tata Motors has crossed the 1,000-unit volume in August this year with a strong order book. The first 10,000 EVs have been led by the early adopters and with this encouragement Tata Motors has built a viable roadmap for the future and is committed to staying on course with making EVs mainstream, the automaker had said in a statement.
At present, the Mumbai-headquartered coffee-to-cars conglomerate is reticent on its future product plans. However, the auto manufacturer is believed to be planning electrifying some of its existing petrol/diesel vehicles that may include the Altros hatchback and the newly unveiled Punch mini SUV.
Chandra mentioned that 10 proposed passenger vehicles will be a mix of cars and SUVs, adding that this would also include all-new ‘electric only’ products. The daily quoted him as saying, “This will surely include the ‘born electric’ products, which would be exclusively developed EVs.”
Tata Motors is averaging monthly sales of around 30,000 units over the past few months despite production problems because of semiconductor scarcity.
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