How Tata Motors is making big strides in electric vehicle development in India
Tata Motors has become a renowned name in the automotive industry of India as well as worldwide. Though Tata has suffered losses in the past ten years, once we understand the market situation, we will understand Tata Motors' roadmap for change spread across the Indian auto market. Having struggled with product updates and the image of an automotive company, many Indian car buyers have abandoned the Mumbai-based car maker, but it has undergone an elegant upgrade in recent years.
Market share of TATA motors
It is currently the third-largest automaker in India with a 13.04% market share by October 2021 which is 5% more than the previous year. The massive improvement in sales nearly quadrupled the market value of manufacturers last year as the Indian auto industry struggles to weather the recession and has stalled for the past 18 months. Tata Motors had a market value of Rs 1.62 lakh crore in October which is Rs 43,800 crore higher as compared to October last year. In the same period, the Sensex BSE index rose from 39,749.85 to 59,252 points, an increase of almost 50%. In the current year, about 10% of the passenger car market is in the hands of TATA motors, nearly doubling its share as compared to five years ago. Turning points also occurred as the auto industry went through a difficult phase of the pandemic. However, as the pace of the coronavirus infection slowed, car sales began again.
TATA Nexon EV and TATA Tigor EV sales increases gradually
The giant automaker, Tata Motors is unlikely to give up its position as the top carmaker in the country. From July to September, TATA Motor's sales rose 50%. This is largely due to a 193% increase in the electric vehicle (EV) product portfolio, which includes the popular TATA Nexon EV and Tata Tigor EV. During this time, Tata Motors sold 2,700 electric vehicles (about 900 in the same period last year). This may be why the company's subsidiary, set up in September, has become the most valuable electric vehicle company in India after $1 billion built from private equity giant TPG Rise Climate. The deal values of the subsidiary amount to $9 billion and a capital inoculate is expected around next year in the first quarter. Tata Motors is also investing $2 billion in its subsidiary over the next five years. In addition, the group is also building an ecosystem that hopes to increase the adoption rate in many countries. Tata Company provides automated solutions to its customers to boost up the sales and usage of Electric vehicles.
Shailesh Chandra’s plan of electrification
“The pledge to eliminate the traditional vehicle in COP26 is a great opportunity to lead the EV movement and start making 10 products and building an ecosystem around them. Therefore, the effort to grow electrification is environmentally friendly. The lack of a system does not affect this," the president of Tata Automotive and Passenger Cars, Shailesh Chandra talks to Forbes India about their electrification plan. Chandra became President of the Passenger Car Division in 2020. Six major manufacturers including Ford, Mercedes-Benz, General Motors, and Volvo along with 31 governments pledged to phase out petrol and diesel vehicles by 2040. In the COP26, these automakers vowed to eliminate the sales of traditional vehicles in the leading markets of Electric Vehicles by 2035.
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