The company has surveyed suppliers on an assured production plan of 50,000 electric vehicles in fiscal year 2023 and ramped it up to 125,000-150,000 units per year over the following two years, several people said. aware of the issue. If he is able to meet the targets, the EV business could potentially generate revenue of Rs 5,000 crore for Tata Motors in FY23 itself, justifying the high valuation at which he sold a participation in the EV activity to the PE fund.
With reservations for 15,000 vehicles and plans to launch three affordable electric cars in the sub-Rs 10 lakh range over the next 12-18 months, the Nexon EV maker is confident to capitalize on its early advantage.
Apart from a new Nexon EV with a higher range (mileage), Tata Motors has lined up an all-new Tiago EV, as well as the electric versions of the Punch small SUV and Altroz sedan in the sub-Rs 10 lakh range, which will likely attract new buyers over the next two years. The company’s electric vehicles are expected to offer a minimum range of 200 km per full charge.
Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility‘ said the company would continue to expand into new cities and adding products to increase accessibility, but he did not share details.
“We will launch one or two products each year which will be at different price points which will increase affordability. Nexon is our heart today, you will see stock below Nexon as well as above the product in the years to come,” Chandra said. .
He declined to comment on the production and sales plan, but reiterated that the company’s long-term vision is to achieve 20% of total sales from electric vehicles.
The chairman of Tata Motors had announced plans to launch 10 electric vehicles by FY26, in his FY21 shareholder address.
Meanwhile, passenger vehicle market leaders Maruti Suzuki and Hyundai Motor India are not expected to launch consumer electric vehicles in India until 2024-25, meaning less competition for Tata Motors at least until then.
The share of electric vehicles in Tata Motors’ total passenger vehicle volume was 0.2% in fiscal year 2020, which increased to 5.6% in December 2021. To 50,000 units in the in FY23, this could exceed 12% of its total targeted volumes.
Commenting on potential volume growth, Chandra said, “The demand is very strong. We got booking rates of 3,500 per month, I’m not even counting fleet orders. »
There is a 5-6 month waiting period, even though the supply has been greatly increased, he said. “Tata Motors EV has a huge backlog, there is a strong backlog of demand for Nexon and Tigor EVs. We are clearly seeing strong acceptance among EV buyers. Previously, we had 30% buyers for that the Nexon EV was a personal vehicle; now it’s shot up to 65 percent.”
Demand is higher in states such as Gujarat and Maharashtra, where government policies result in additional demand incentives. The company is also looking to open more dealerships to sell electric vehicles.
Battery vehicle, or BOV, growth is gradually accelerating in India – up to 311,358 BOVs were recorded in 2021, up from 119,654 in 2020, data from the government’s Vahan portal shows.
Tata Motors sold 350 electric vehicles in FY19, which increased to 1,300 the following year and 4,200 in FY21. Its electric vehicle volume in the current FY22 is expected to be 17,000 to 18,000 units. In the first nine months of FY22, Tata Motors sold around 10,000 electric vehicles.
The company’s market share in electric vehicles grew from 18% in fiscal year 2019 to 82% at the end of 2021.