THE FUTURE OF TATA MOTORS EV IN INDIAN MARKET

PROMISING BEGINNING

India's electric vehicles industry has been slow to take off, despite a push by the government to transition away from internal combustion engine cars to reduce pollution levels and dependence on costly fuel imports.


But the sector received a huge boost when US private equity firm TPG's Rise Climate Fund and Abu Dhabi holding company ADQ said on October 12 that they would inject $1 billion into Tata Motors passenger electric vehicle business. TPG and ADQ will hold between an 11 per cent and 15 per cent stake in Tata's EV business, which will be spun out into a new unit that is valued at $9.1bn


The investment in Tata Motors, which represents the first major fundraising by an Indian car maker in the electric vehicle segment, is set to be a game changer for the company and the broader industry.

THE EV JOURNEY

In 2006 although Tata Motors European Technical Centre (TMETC) started development of EV Technology, it has not been commercially viable owing to high battery prices. Back then India had no demand of electric vehicles. It steered ahead in the EV game, from developing skill sets to an image make over to driving demand in personal segment.

Adoption of EVs has been low given the apprehensions about technology. Thus creating awareness of the importance of EVs for India as well as commercial advantages of using EVs were important to accelerate adoption.


TATA MOTORS PROJECTS

In addition to the Advanced Engineering (AE) R&D portfolio development, carried out jointly with Tata Motors' AE teams in India and the product development projects, TMET( Tata Motors European Technical Centre) has undertaken several projects where it has assumed leadership and complete project delivery responsibility, with support from Tata Motors.


These projects have shaped TMETC's capabilities, particularly in low carbon vehicle technologies. However, certain key projects that have been in the public domain are highlighted below:

  • Tata Pixel zero turn demonstrator

  • Tata Ace electric vehicle (EV) development

  • Tata Vista electric vehicle (EV) development

THE PLANS AHEAD

EVs are likely to see better adoption in segments with a 200-plus km range cars. The opportunities lies in democratising the adoption of EVs by making them available to every segment of the Indian automotive customers through rapid localization of all components and rollout of fast charging networks.


In the next three years, it is expected that more than 20 EV models will get launched. Also, the failing battery prices and emission norms being enforced in the next two years may results in inflexion point for increasing EVs.

Tata Motors is building a range of affordable electric cars as it remains committed to its electrification strategy and results are clearly showing. It has ranked amongst the top EVs production manufacturing company ahead of its rivals in India.


The company has also established itself as the frontrunner in the EV space, a journey which started 3 years ago with R&D support from Jaguar Land Rover. The EV version of Tata Nexon has helped to gain market in personal EV space.





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