Tata Motors is shifting its focus in the electric vehicle (EV) market from early adopters to broader market development strategies, according to the group CFO PB Balaji. The idea is to focus on clearing the hurdles that EV buyers face like charging infrastructure and total cost of ownership.
Despite missing its target of selling 1 lakh units of passenger electric vehicles in FY24, the company remains optimistic about achieving this milestone in the current fiscal year. Balaji stated that Tata Motors is keeping its options open regarding incentives under India's new EV policy and manufacturing decisions for its subsidiary Jaguar Land Rover (JLR).
During an earnings call, Balaji emphasised Tata Motors' commitment to EV expansion, revealing plans to launch the Curvv EV as part of their strategy. He noted that while early adopters are dwindling, a new wave of customers requires reassurance on various fronts such as charging infrastructure, total cost of ownership, and model variety.
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Balaji framed the current market phase as one of exciting development rather than a challenge, emphasising the company's focus on addressing barriers to EV adoption. Tata Motors aims to accelerate EV penetration by collaborating with charge point operators to deploy nearly 22,000 chargers and promoting the synergy between rooftop solar panels and EV usage.
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Despite selling 73,800 passenger EVs in FY24, a 48 percent increase from FY23, Tata Motors is determined to exceed the 1,00,000 unit target for the current fiscal year. Regarding JLR's potential participation in India's new EV policy incentives, Balaji stated that all options are being considered and plans will be shared once clarity is attained.
Under India's new EV policy, companies establishing EV manufacturing facilities will benefit from lower customs/import duty for a limited period, aimed at encouraging domestic production of electric passenger cars.
Tata Motors has earmarked Rs 43,000 crore in financial year 2025 for product development and advanced technologies. The decision comes with the semiconductor crisis easing off and expected sustenance in demand for both UK-based subsidiary Jaguar Land Rover (JLR) and standalone business.
A senior company official told reporters that during FY 2024-25, investment will be 35,000 crore (3.5 billion pounds) for the JLR unit and around Rs 8,000 crore will be spent for Tata Motors’ standalone business.
(With inputs from PTI)
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