Tata Motors is preparing to open overseas markets for its electric vehicle range as part of the next growth stage in this segment.
Although there is still work to be done, markets in both developed and developing nations have been identified. The popularity of the brand in those areas means that we anticipate positive reception for our items. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, told ETAuto that announcements would be made when the time was right.
Curvv, the company’s most recent electric solution, was just introduced in Mumbai, and the company is optimistic that it can support its global business objectives. “Our portfolio now becomes even stronger and it becomes a global car because we have a Curvv type of vehicle,” he continued.
From the perspective of the business, this approach will combine a number of ICE (internal combustion engine) and EV markets. It is also not established on “the protection of a barrier” against the Chinese because “we will have to overlook that challenge”.
No love lost
To be as competitive as Chinese players, Chandra says it is important to get the cost structures right. The potential for a stronger preference for Indian goods in light of the current levels of hostility towards China by the US and the EU could potentially be advantageous to Tata Motors. Heavy import taxes have been applied to Chinese electric vehicles in order to prevent them from dispensing with more costly local brands in the West.
Since China is already leading the way in this area and Tata Motors is still working on creating a worldwide EV template, everything is still up in the air. Even though the West has strong tariff barriers, the nation is still looking for potential locations for its EV bases in Latin America and ASEAN.
The goal of the cost structures we are developing is to try and reduce them down to the level of the Chinese. Since they have concealed government subsidies that we do not, we are still lagging behind them. We should want to be as competitive as China, minus the subsidies, and that is exactly what we are doing,” Chandra remarked.
Tests have already been conducted in markets with right-hand driving, such as the UK and certain Commonwealth countries. He continued, “We will prioritize RHD regions first, and since they account for 80% of the export opportunity, we are also actively examining left-hand drive markets.”
Falling battery prices
Regarding the competitive pricing of the recently released Curvv (which starts at INR 17.49 lakh for various versions), Chandra stated that this was to be expected due to the team’s previous years of hard work. Although they “spurted to a high level” before drastically declining by 50% over the previous 18 months, battery prices were also predicted to decline.
He added that a lot of work had gone into perfecting the architecture of the battery pack, which has cells inside a module. A lot of the formerly imported cooling systems, busbars, and other components are now localized within the battery pack.
“Costs in the battery pack have been optimized as a result of our improved design and switch to a more ideal form of cell chemistry,” he said. In addition, many subsystems have been localized, which has contributed to Curvv’s price reduction.
“Compared to a small car, the difference in GST rates is more significant since we entered the midsize SUV segment,” Chandra added. All of these has aided in the Curvv achieving price parity with its ICE category competitors.
Full freedom EV
The business believes that the range or battery size (45kWh and 55kWh) is even more crucial since it allows “you are not offering merely a city EV but a full freedom EV” that can handle any interstate travel for the same cost as an automatic ICE car.
It provides a great deal of comfort, and electric vehicles (EVs) also have lower operating costs and are easier to drive. An ICE automatic customer has every reason to seriously consider an EV thanks to Curvv, the speaker stated.
Things appear ideal for the time being, but in the volatile world of today, anything may happen. Given the current geopolitical tensions caused by wars in West Asia and Europe, there is a school of thinking that suggests commodities price changes in both ICE and EVs may occur.
According to Chandra, things might not be as bad as people think. According to his explanation, the raw material constitutes a little portion of the cost within the cell, and the cell itself is only exposed to that amount of volatility. As a result, the risk will likely be limited to changes in the price of raw materials and the volatility of cell prices will be minimal.
JLR synergies for Avinya
Coincidentally, Jaguar Land Rover is now developing a new electrical architecture for the Avinya, the company’s upcoming flagship electric vehicle, which is expected to be released in a few years. We are collaborating on a software-defined vehicle, an electrical and electronic architecture, and a common skateboard.With Avinya as the focal point, many synergies are occurring, according to Chandra.
He claims that each product has contributed in some way to Tata Motors’ electric journey to date. Given that EVs had not yet attained this level of desirability, the Nexon elevated them to aspirational status. According to Chandra, “Nexon attracted early adopters and made EVs a viable product that could be purchased and used effectively.”
Tiago, which was adjacent in line, was troublesome. EVs were previously supposed to be exclusive to the wealthiest segments of society, but at INR 8.5 lakh, they attracted new customers from the majority. It became feasible as an intracity offering and raised the bar for EV demand.
“After that, there was a Punch that occurred in between these two. You were able to purchase a car with a similar higher range to the Nexon for less than INR 15 lakh. With the flexibility of interstate driving, it became a serious option for those who desired it as their primary vehicle, according to Chandra.
Another high with Curvv
The Curvv now advances the EV narrative by bringing price parity for an ICE high-range vehicle and reducing reliance on charging. In his words, interstate travels are rarely longer than 400 kilometers, therefore a Curvv traveling the 400 kilometers from Bengaluru to Chennai would not really need a charger. The newest EV is a “compelling proposition” because it is an attractive SUV coupe as well.
Tata Motors’ faith in electric also comes from the regular customer surveys it conducts. In a recent survey of 10,000 EV users, 75% of them stated they were driving EVs as their primary vehicle. Considering that EVs were typically viewed as the second car in the family after an ICE model and were thought to be more convenient for interstate trips, this input on their acceptance was much-needed.
Survey findings
Additionally, according to the report, 36 percent of these 10,000 EV buyers chose to part with their ICE vehicle. “EVs are obviously more in demand as, once you start driving one, your worries go away and you realize there is no reason to keep your ICE car around. People should feel more comfortable using Curvv as their family’s only vehicle, Chandra added.
However, not everything about EVs in the study was rosy. Consumers wanted greater charging infrastructure in order to be prepared and expressed ongoing concerns regarding range. Some also expressed dissatisfaction over the current charging facilities’ unreliability.
It was also evident that many were choosing electric vehicles (EVs) in order to contribute to a cleaner environment. This goal went beyond the financial gains from operating expenses, which remained the primary factor, and the general driving pleasure.
