Tata Motors Ltd plans to introduce 10 electric vehicles across commercial and passenger vehicle businesses in India over the next four years, the company’s chairman said, as India’s largest vehicle maker seeks to exploit the growing domestic market for eco-friendly vehicles.
Tata Sons Ltd, the parent of Tata Motors, is also exploring opportunities to invest in manufacturing lithium-ion cells in India and Europe to forge a proper supply chain for its zero-emission vehicles in the coming decade, said N. Chandrasekaran, who is also the chairman of Tata Sons that controls the diversified Tata group.
With governments worldwide pushing companies to develop and produce EVs to reduce carbon footprint, automakers are focusing on offering sustainable mobility solutions, including more battery-electric and hybrid-electric offerings.
“In India, EV penetration in our portfolio has doubled to 2% this year, and we expect penetration to increase exponentially in the coming years. Tata Motors will lead this change in the Indian market. By 2025, Tata Motors will have 10 new BEV (battery electric vehicles), and as a group, we will invest proactively to set up charging infrastructure across the country,” Chandrasekaran said in the company’s annual report for 2020-21.
He said Tata Sons is evaluating the creation of an automotive software and engineering vertical within Tata group that will help it lead in the sphere of connected and autonomous vehicles.
Tata Motors currently makes the Nexon EV model under its namesake brand. Its UK unit Jaguar Land Rover produces the I-Pace electric vehicle models.
Earlier this year, JLR announced its pivot towards a fully electric future through the ‘Re-imagine strategy’ wherein the company will reposition and redesign Jaguar as an all-electric luxury car brand by 2025. Likewise, Land Rover will evolve as a maker of luxury electric sport-utility vehicles (SUVs).
EVs will form 60% of Land Rover’s annual sales by 2030. JLR expects to stop sales of combustion engine vehicles by 2036 as part of its aim to become a ‘net zero carbon business’ by 2039.
JLR also announced its decision to write-off investments worth ₹15,000 crore earmarked for developing internal combustion vehicles, which became unviable after its move towards electric vehicle technology.
Chandrasekaran said Tata Motors is in the process of adapting its underlying business model towards sustainable mobility, with JLR targeting zero tailpipe emissions for all models it sells by 2036.
“With these moves, Tata Motors will be well placed to meet the opportunities that arise from these fundamental shifts. Your company will be the torch-bearer for green mobility in the automotive world and create a virtuous cycle of growth and returns for our shareholders, too,” he added.
The Mumbai-based automaker reported a strong recovery in its operating performance in the third and fourth quarters of FY21, backed by higher sales of JLR vehicles in key markets. It, however, does not expect the growth momentum to continue in the near term as production is likely to be hit by a global shortage of semi-conductor parts, a critical component in modern vehicles.
Meanwhile, the disruptions caused by covid’s second wave has hit Tata’s domestic commercial vehicle business, which was showing signs of a revival in the second half of last fiscal.
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