The electric vehicle (EV) revolution has reshaped India’s mobility scene. With 16.6 lakh EVs sold in FY2023-24, a 41% growth from the previous year, EVs are no longer a niche market but a mainstream choice. Today, over 20 lakh EVs, including 2-wheelers, 3-wheelers, and 4-wheelers, are on Indian roads. These eco-friendly vehicles are becoming part of everyday life and paving the way for a cleaner, greener future.
As India moves towards its ambitious net-zero target for 2070, companies like Tata Motors are spearheading the transition with a product portfolio that aims at supporting India’s EV infrastructure. How exactly? Let’s understand.
Overview of the Company:
Tata Motors Limited (TML), founded in September 1945 and based in Mumbai, India, is a global leader in the automobile industry. Known for its world-class quality and engineering, TML offers a wide range of innovative, integrated, and safe mobility solutions. It leads India’s shift to electric vehicles, shaping the country’s future of mobility.
With a strong presence across 125 countries, Tata Motors is India’s top vehicle manufacturer. To foster EV adoption, it is actively working on overcoming market challenges. These efforts include enhancing charging infrastructure, addressing the total cost of ownership, ensuring good residual value, and offering models suited to varied use cases. These efforts align with Tata Motors’ share market strategy, as its shares reflect investor confidence in its vision for sustainable mobility.
The company’s leadership in EVs suggests a strong growth outlook for investors tracking the Tata Motors share price or considering share market advisory. Tata Motors continues to be a driving force, not only in expanding EV adoption but in setting industry benchmarks for sustainable mobility in India
How Tata Motors Contributed to India’s EV Market:
- Expanding EV Lineup and Market Share:
Tata Motors has rapidly expanded its EV offerings, including the Nexon EV, Tigor EV, and the recently launched Tiago EV. This growing lineup has helped Tata Motors secure a dominant position in India’s EV market, capturing over 80% of the market share as of 2023.
Tata Motors sold over 50,000 EV units in FY 2023, reflecting a sharp increase in EV adoption in India. This success is partly due to Tata’s strategic focus on affordable EV models catering to India’s mass market. By targeting the budget-conscious consumer segment, Tata Motors has made EVs accessible to a broader audience.
- Collaborating to Build Charging Infrastructure:
Developing a reliable charging infrastructure is crucial for EV adoption, and Tata Motors has made strides in this area through its subsidiary, Tata Power. The company is actively installing EV chargers nationwide, aiming to reduce range anxiety and make charging convenient for EV users.
As of 2024, Tata Power has installed over 3,000 public charging points in more than 300 cities, including highways, shopping malls, and residential areas. Tata Motors has collaborated with Tata Power and other public and private entities to expand this network further, addressing a major hurdle in the EV adoption journey.
- Investments in Battery Technology and Local Manufacturing:
Battery costs are one of the highest components of EV production, and Tata Motors is addressing this by investing in battery research and local manufacturing. The company’s focus on enhancing battery performance and reducing costs is critical to making EVs more affordable.
Through Tata Chemicals, Tata Motors is exploring the development of lithium-ion battery cells, supporting India’s ambition to create a self-sustaining EV industry. Additionally, Tata Motors has committed Rs.15,000 crore to its EV business, underscoring its commitment to making India a global EV manufacturing hub.
- Government Collaboration and Policy Advocacy:
Tata Motors actively engages with government initiatives and policies to accelerate EV adoption in India. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, introduced by the Indian government, has made EVs more affordable through subsidies and incentives. Tata Motors has aligned its EV strategy with FAME’s goals, launching models that benefit from these incentives and passing on cost benefits to consumers.
Additionally, Tata Motors supports the Production Linked Incentive (PLI) scheme for EVs and advanced battery components, advocating for local production and reducing reliance on imports. By working closely with the government, Tata Motors helps shape a policy environment conducive to EV growth in India.
- Creating an End-to-End EV Ecosystem with Tata Group Companies:
Tata Motors benefits from cohesions within the Tata Group, leveraging resources and expertise across Tata Power, Tata Chemicals, and Tata Autocomp Systems. Together, these entities form an end-to-end EV ecosystem that includes charging infrastructure, battery manufacturing, and component supply.
For instance, Tata Autocomp Systems, in collaboration with global players, produces EV-specific components like battery packs and power electronics, supporting Tata Motors’ EV production and scaling capabilities. This collaborative approach not only streamlines EV manufacturing but also strengthens India’s overall EV infrastructure, enhancing the user experience and reliability of EVs in the country.
Tata Motors’ Vision for India’s EV Future:
Tata Motors has set an ambitious target of achieving 30% of its total sales from EVs by 2030. To support this goal, Tata Motors is ramping up its strategy to reach a broader audience. It plans to launch new models, like the Curvv EV, which expands its lineup to suit diverse consumer needs. To address barriers to EV adoption, Tata Motors is focused on market development by improving charging access, lowering total ownership costs, and ensuring vehicle resale value.
The company also aims to install 22,000 charging points nationwide through partnerships with charge point operators, reducing range anxiety and making EV ownership more convenient. Additionally, Tata Motors is collaborating with solar rooftop providers to highlight the benefits of using solar power with EVs, making them an economically viable and sustainable option. This forward-thinking strategy positions Tata Motors as a leader in vehicle production and building a robust EV ecosystem for India’s evolving mobility landscape.
Bottomline:
Tata Motors’ multi-faceted strategy, encompassing affordable EVs, robust infrastructure, local manufacturing, and policy alignment, demonstrates its commitment to India’s EV transition. By focusing on sustainable growth and addressing key adoption barriers, Tata Motors is leading India’s EV market and setting a benchmark for the automotive industry’s role in environmental responsibility. As Tata Motors continues to innovate and collaborate, it will likely remain a cornerstone of India’s electric vehicle journey.
