Tata Motors Plans To Bring EV Costs On A Par With Fuel-Based Vehicles by 2023

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  • Shailesh Chandra, the President of Tata Motors Passenger Vehicles Business in an interview explained and answered questions on the company’s vision and future plans in the Indian EV sector.
  • Tata’s aim to bring the total cost of ownership of EVs on par with the petrol and diesel vehicles by 2023 is unquestionably a commendable pursuit.

“For private car owners, Tata EVs (for annual running of 10K km) will achieve total cost of ownership parity with both petrol and diesel by end of FY23. Tata EVs (for annual running of 50K km) have already achieved parity in terms of total cost of ownership with CNG and Diesel,” said Chandra in an interview.

Last month, Tata brought in a huge investment into its all-electric subsidiary in India along with the commitment of adding 10 new EVs to its portfolio. Its investment into accompanying drivetrains, products and platforms also includes improving the charging infrastructure.

Shailesh Chandra commented, “To fund this growth, EV business will require a significant investment to reach our targets. The passenger vehicle business on its own would be unable to fund the required investment. Thus, we believe that creating an all-electric subsidiary will help to drive the required focus and efforts on all aspects of electrification.”

The Indian government in the last few years introduced multiple initiatives to promote EV adoption. At the same time, they have announced stringent emission regulations such as BSVI Phase II and CAFE which discourages ICEs with higher emission levels. This in turn forces OEMs to include EVs in their portfolio to meet the guidelines.

He also said that considering the government’s target to achieve 30 percent EV penetration by 2030, current PV market will grow from 2.8 million to 4.9 million units and the EV market will grow to 2.1 million units by then. ICE vehicles will evolve to have more emission-friendly technologies owing to the strict emission norms. However, at least for the next decade, ICE and EV vehicles will co-exist in India and will present a significant growth opportunity for OEMs in both these spaces.

Recently, Tata’s Punch had a highly successful launch amidst a crisis pulling down the global auto sector. In its first month, it saw total sales of 8,500 units leading to the company’s market share to grow from 4.8 per cent in FY20 to 8.2 per cent in FY21 to 11.3 percent as on YTD Q2 FY22.

On this note, Shailesh believes that Tata’s success can be owed to the fact that it is the leading manufacturer of the safest cars in India. He feels, “Active safety is on top of the list features for customers, which is evident from the fact that over a quarter of our customers have cited safety as the primary reason to buy a Tata Car.”

Over 400 EV deliveries of Tata Nexon are being delayed in Maharashtra

Tata Group built its EV ecosystem, The Tata EV UniEVerse to place supporting levers in vehicle financing, home and public charging infra, localization of e-powertrain and electric components. The concept was launched with Tata’s Nexon EV to further the adoption of EVs.

Furthermore, Shailesh mentioned, “Tata Motors partnered with Tata Power to proactively address the challenges of home, workplace, captive and public charging. The other elements of the ecosystem include a supplier base for EV components, vehicle financing and mobility services partners.

We’ve also collaborated with Tata Autocomp for the localization of battery pack assembly and motor assembly. For financial solutions for both fleet and personal segments, we collaborated with Tata Motors Finance and Tata Capital to introduce affordable financing solutions.”

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