Tata Motors Targets 30% EV Penetration In Its Portfolio By FY30

Pratik RakshitJun 11, 2024

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The company currently offers four electric car models and aims to introduce six additional models by March 2026.

Tata Motors has announced a substantial capital expenditure plan of ₹16,000 crore to ₹18,000 crore for its electric vehicle (EV) division by FY30. The company currently offers four electric car models and aims to introduce six additional models by March 2026. Tata Motors also targets a 20 per cent share in the passenger vehicle (PV) market by FY30, up from its 13.81 per cent share in FY24, as per data from the Society of Indian Automobile Manufacturers (SIAM).

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In a recent investor presentation, Tata Motors outlined its strategy to mainstream EVs in India. This includes expanding its EV product portfolio to provide more options with improved driving range and achieving price parity with internal combustion engine (ICE) vehicles. Additionally, the company plans to increase the number of its electric car dealerships to 50 cities within the next 24 months. Collaborating with private charging point operators (CPOs) like Chargezone, Glida, and Statiq, Tata Motors aims to increase public charging points across India tenfold, reaching around 100,000 by FY30, from the current 4,300 community charging points.

The company's efforts to reduce range anxiety and enhance EV ownership experience include expanding both public and community charging infrastructure. Public charging points, accessible to any EV owner, will be significantly increased, while community charging points, meant primarily for residents of specific housing areas, will also see substantial growth. Currently, only 10-15 per cent of Tata Motors' EV customers use rooftop solar for charging, but the company aims to increase this to 50 per cent by FY30.

The Indian market for electric cars saw a robust growth of 91.37 per cent year-on-year in FY24, with 90,996 units sold, according to the Federation of Automobile Dealers Associations (FADA). Tata Passenger Electric Mobility (TPEM), a subsidiary of Tata Motors, dominated this market with a 70.57 per cent share in volume terms last year.

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Tata Motors projects that its EV division will reach EBITDA breakeven by FY26, meaning its earnings before interest, taxes, depreciation, and amortisation will cover operating costs, leading to positive cash flow. The company also plans significant capital expenditure in its EV division between the current fiscal year and FY30 as needed. Tata Motors anticipates EV penetration in the Indian car market to rise from 2 per cent last year to 20 per cent by FY30, and it aims for 30 per cent EV penetration within its portfolio by the same year.

Tata Motors also expects its PV volume growth to outpace the overall market, aiming for a 16 per cent market share by FY27 and reaching 18-20 per cent within another two to three years.

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