Tata Motors' strategy in the Indian electric vehicle industry
Indian auto giant Tata Motors Co., Ltd. is a world-famous automobile manufacturer including electric vehicles. It is part of the renowned Tata Group, which manufactures a wide range of cars, SUVs, trucks, buses, and military equipment worldwide. It operates through a strong global network of subsidiaries, and joint ventures in various parts of the world. Both Tata Motors and Jaguar Land Rover are working to electrify their vehicles within the near future. Tigor EV and Nexon EV from Tata Motors are currently the leading electric vehicle models in India with the highest sales. In 2020, electric vehicle sales reached 2,600 units with a market share of 63%. Shares of the company rose 5.36% in the previous quarter.
Plan 1: Tata Motors will launch 10 new electric vehicles
Tata Motors will launch ten new electric vehicles in India by 2025. The company has announced plans to build ten new battery-powered electric vehicles (BEVs). All these electric vehicles are specifically planned and made for the Indian market. Tata Motors also announced that it has sold more than 4,000 Nexon electric vehicles since its launch at the start of the previous year. The company's goal is to introduce 10 new electric vehicles in India to make its business model more eco-friendly. Tata Motors is committed to working with Indian and European battery manufacturers to ensure their vehicle package is environmentally friendly. The company's Nexon EV is in high demand in India. Given this growing demand for electric vehicles, the company decided to expand its EV product portfolio. The company values the ability to create automated software and engineering dynamics within the organization. This will allow the company to enter the world of connected, autonomous vehicles. With a focus on sustainable transportation, Tata Group is committed to accelerating the process of accelerating changes in customer behaviour in India and globally. Jaguar Land Rover brand also plans to reduce emissions by 100% by the end of 2030. Jaguar aims to make full use of electricity by 2025. By 2030, 60% of the company's sales will come from electric vehicles.
Plan 2: Tata Motors plans to launch a range of affordable electric vehicles
Local auto giant Tata Motors plans to make high-end electric cars and it is one of the most innovative plans in terms of electric vehicles and affordability. It will be 15-20% more capable than traditional petrol/diesel vehicles. At the same time, it offers a single charge battery life of at least 200 kilometres. The news kicks off with Tata Motors' re-capture of the Indian passenger car market and a significant increase in the sector in just over a year. With strong demand for products such as the Tiago mini, the Nexon compact SUV, and the Altroz hatchback, the company is confident that its monthly worldwide sales reach at least 22,000 units, second only to manufacturers like Hyundai and Maruti. It is no coincidence that Tata has recaptured third place in the top Indian passenger car market. The company has recorded the highest sales figures in the last few months for the past eight years, increasing market share by almost 300 basis points from about 4.7% last year to about 7.7% now.
Plan 3: Tata Motors plans to be independent in terms of battery and infrastructure electric vehicle programs
As per Tata Motors, making and planning an EV ecosystem will be a collaborative effort. Tata will try to be self-sufficient or group-dependent from batteries to charging stations. Leading investors in the newly established TM LEVCo electric vehicle subsidiary will support this strategy. In an interview with TPG Grow and Rise Fund partner Ankur Tadani, he said "TPG Rise Climate and ADQ are investing $1 billion not only in 11-15% share purchases in the sector but also in the Group's efforts through new financing." The idea behind this plan between TPG and Tata Motors is similar and shows the trust between them. This deal between the two giants took eight weeks to be finalized. New investors receive mandatory shares (CCPS). After the transformation, they will own 11-15% of the electric vehicle industry in 18 months, with the remainder in parent company Tata Motors. Changes are also linked to pre-agreed income limits. The first round infusion of 50% capital injection will be completed on March 22 and the full capital infusion by the end of the next year.
Wrapping up
Ten years is a long time for a business cycle. This indicates when the strategy will work or move forward. Today, India's electric car industry is at a crossroads, and it's no secret that Tata Motors has surpassed the 10-year lead of its rival Mahindra in two years. As Tata Motors continues to work on its electrification strategy, they are rolling out several affordable EV plans and the results are in front of everyone.
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