Tata Motors, India's largest EV manufacturer, has unveiled two new electric sport utility vehicles (SUVs) to expand its EV market lead. This development comes in a recent Nikkei Asia report.
The Sierra and Harrier electric variants were previewed on the first day of Auto Expo 2023, India's largest motor show, alongside an EV concept called Avinya, which is set to go public by 2025.
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According to Sailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, the launch of these new vehicles set the stage for Tata Motors to build a robust electric fleet that will account for one-fourth of its portfolio by 2025 and 50% by 2030.
Tata Motors has set ambitious goals for itself, with plans to achieve net-zero carbon emissions in the passenger car division by 2040, followed by the commercial vehicle business in 2045, said N. Chandrasekaran, Executive Chairman at conglomerate Tata Sons.
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According to reports, the company was an early mover in India's EV segment, where two-wheelers have far outshone cars. Data from research firm CEEW-Center for Energy Finance notes that four-wheelers accounted for only 3.9% of electric vehicles sold in India in fiscal 2022.
Tata Motors has set a target of selling 50,000 electric cars for the fiscal year ending in March to keep up with the market.
A Promising Market
Tata Motors raised INR 75 billion ($916 million) in 2021 from private equity firm TPG and Abu Dhabi sovereign fund ADQ to fund its EV venture, valuing the entity at $9.1 billion, according to IndiaTimes. However, the company faces stiff competition from global automakers launching their offerings in India's EV market.
India's government has also announced incentives aimed at increasing the number of EVs on the road, with a goal that by 2030, EVs will make up 70% of sales of commercial cars and trucks, 30% of private vehicles, 40% of buses, and 80% of two- and three-wheelers.
The government has also cut taxes on electric cars and introduced two subsidy programs to spur the adoption of clean-energy vehicles.
India's EV Market
Hyundai and Chinese EV maker BYD are among the global automakers betting on India's EV market. In contrast, India's largest automaker, Maruti Suzuki, also unveiled the concept version of its first electric vehicle.
However, Nikkei Asia tells us that Tata Motors has set itself apart by launching cars with price tags as low as $10,000, positioning itself as a more affordable option for Indian consumers.
The company is also exploring other clean-fuel options, such as compressed natural gas, to build an environmentally friendly fleet, reflected in the launch of CNG variants of the Altroz hatchback and Punch SUV.
Tata Motors is making bold moves to solidify its position as a leader in India's EV market with the launch of two new electric SUVs, Sierra and Harrier EV, and an EV concept called Avinya.
The company's goal of net-zero carbon emissions in the passenger car division by 2040 and the commercial vehicle business by 2045 is also promising.
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