Over the next five years, India’s EV sales are predicted to increase significantly, which would force Tata to strengthen its ecosystem.
The company intends to invest between Rs. 160 and 180 billion to expand its electric vehicle (EV) business portfolio, according to information recently released to the media by Shailesh Chandra, managing director of Tata Motors’ passenger cars and electric mobility sectors.
The corporation aims to control 30–40% of overall sales by FY30 and predicts that domestic sales of electric vehicles will climb tenfold during the following five years. The corporation does anticipate that this rise will not, however, be sufficient to meet the government’s earlier aim of 30% of new car sales.
Tata Motors, a significant player in the national market for electric car sales, had earlier predicted that by 2030, electric cars would account for up to half of its overall sales.
The company’s sales mix generally includes a larger percentage of EVs and CNG vehicles. It wants to grow its market share in passenger cars from 13.9% in FY24 to 18–20% throughout this time.
It intends to increase the size of its addressable market, as the MD stated. With seven goods now available, it accounts for 53% of the market and has a 26% market share in this particular niche. By FY30, the target addressable market is supposed to have grown to 80%.
Tata Motors plans to update its current models and launch new ones as part of its expansion strategy. The business intends to introduce the Sierra EV, Curvv ICE (internal combustion engine), and Curvv EV within the course of the following two years.
Furthermore, the self-sustaining Tata Passenger Vehicles business aims for 10% EBITDA margins in both the combustion engine and electric car segments. This division will continue to include Jaguar Land Rover and is expected to be debt-free by the following year. Q1 anticipates a division in the upcoming fiscal year between the passenger and commercial vehicle segments.
According to P. Balaji, CFO of Tata Motors Group, the Economic Times, the division of Tata Motors’ commercial vehicle division will allow the resulting companies to concentrate more efficiently on their growth goals.
The commercial vehicle section of Tata Motors, which was formerly a substantial source of revenue, will have the freedom to reallocate its financial flows back into its business plans following the demerger.
