Tata Motors Targets Cost Parity With Chinese EV Makers Amid Global Expansion Push

Tata Motors has announced its intention to match pricing levels with Chinese electric vehicle (EV) manufacturers as part of its ambitious global market expansion plans, according to a top company executive's statement, news agency PTI has reported. During his presentation at the "FT Live Energy Transition Summit India", Shailesh Chandra, Managing Director of Passenger Vehicles Electric Mobility at Tata Motors, revealed the company's international ambitions for its EV lineup, acknowledging the inevitable competition with Chinese automotive manufacturers.

Chandra recognised the competitive advantages held by Chinese manufacturers, explaining that these companies benefit from comprehensive ecosystem support that provides superior cost structures through economies of scale and extensive value chain incentives designed to enhance electric vehicle cost competitiveness.

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"Right now, as far as we are concerned, we are completely focusing on that possibility and scenario, which is very real, and we are already competing with some of them in some manner. We are very confident that at least in the next 1-1.5 years, we will be, from a landed cost perspective, taking the logistics and duties of 15 per cent or so, pretty much on cost parity with the Chinese manufacturers," Chandra was quoted as saying by PTI.

Localisation Strategy

The executive emphasized the critical importance of enhanced domestic manufacturing capabilities and self-reliance initiatives. Chandra highlighted the company's comprehensive preparation across multiple components and subsystems, from semiconductors to various automotive parts.

"Whether we talk about semiconductors, whether we talk about through all the components and subsystems..I think we are preparing ourselves to take that leap of faith as well as effort, because if we have to go global, we have to face, in any case, the Chinese players," he added.

Current Market Position

Acknowledging existing cost competitiveness gaps compared to Chinese manufacturers due to their ecosystem advantages, Chandra expressed confidence in Tata Motors' rapid advancement toward global competitiveness, driven by the company's international expansion objectives.

"So right now, we might be behind in terms of cost competitiveness versus the Chinese because of all the benefits of the ecosystem in China, but we are fast preparing ourselves to be globally competitive, given that our aspirations is to go global," he stated.

Indian EV Market

Tata Motors currently offers multiple passenger electric vehicle models in the domestic Indian market. The company has witnessed significant market penetration growth, with electric vehicles now representing 5 per cent of the domestic market, supported by favorable government policies and new product introductions.

Government Policy Support

"I must mention that what has really helped in sustaining this growth is the policy stability by the government in terms of giving incentives in the form of lower GST or low tax benefit. State governments also came with incentives. I think all this has gone behind, you know, significantly increasing the sales of electric cars," Chandra stated.

Market Momentum

Recent performance data shows Tata Motors achieved remarkable growth in electric vehicle sales, retailing 7,111 electric cars in the previous month, representing a substantial 62 per cent increase compared to 4,392 units sold in the same period last year. The broader electric passenger vehicle market also demonstrated strong expansion, with total sales reaching 17,393 units last month versus 6,791 units in the corresponding previous year period.