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CliQ INDIA > Services > Tech > Tata Motors plans global expansion of electric cars amid rising demand | CliqExplainer
NationalTech

Tata Motors plans global expansion of electric cars amid rising demand | CliqExplainer

Tata Motors Ltd. is gearing up to launch its successful electric vehicles (EVs) on the global stage, aiming to capitalize on growing demand worldwide, according to Shailesh Chandra, Managing Director of Tata Motors' EV and PV divisions.

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Highlights
  • The company's EV unit achieved significant growth milestones in FY2024.
  • Tata Motors plans to launch its EVs globally, targeting markets beyond India.

Tata Motors Ltd. is gearing up to launch its successful electric vehicles (EVs) on the global stage, aiming to capitalize on growing demand worldwide, according to Shailesh Chandra, Managing Director of Tata Motors’ EV and PV divisions. In an interview with NDTV Profit in Mumbai on Wednesday, Chandra highlighted the company’s readiness to take its EV lineup international, emphasizing the significant market potential beyond India.

“We have world-class products priced below $30,000, making them competitive in developed markets where EVs typically exceed this price range,” Chandra stated confidently. He underscored Tata Motors’ substantial investment in technology as a strategic move to seize global opportunities in the EV sector.

The move comes amidst escalating trade tensions affecting Chinese EVs globally. Recent announcements by the European Union and the United States to hike tariffs on Chinese electric vehicles have created openings for Tata Motors to expand its footprint in these critical markets. Chandra noted that Tata Motors benefits from economies of scale comparable to its Chinese counterparts, positioning it advantageously in the international EV landscape.

Despite competitive pressures, Chandra downplayed the reliance on trade barriers as a central part of Tata Motors’ strategy, cautioning on their unpredictability. Instead, he emphasized Tata Motors’ robust position as India’s largest EV manufacturer by volume, with a commanding 75% share of the domestic market in 2023, as per VAHAN data.

Tata Motors’ EV portfolio includes four models spanning SUVs like the Nexon.ev and Punch.ev, sedans such as the Tigor.ev, and hatchbacks like the Tiago.ev, with prices remaining below ₹20 lakh ($25,000). The company’s EV unit, Tata Passenger Electric Mobility Pvt. Ltd., achieved significant milestones in fiscal year 2024, reporting a revenue of ₹9,300 crore and a 47.5% year-on-year increase in wholesale dispatches.

“As we approach a cumulative production of 150,000 EVs, a benchmark achieved by few global manufacturers, the time is ripe for Tata Motors to explore international markets,” Chandra stated in a letter to shareholders. He indicated that the company is actively developing its international strategy, expected to be finalized in the coming months pending board approval.

The expansion into global markets signifies Tata Motors’ strategic evolution in the electric vehicle sector, positioning itself to meet burgeoning global demand while leveraging its technological prowess and market leadership in India.

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