Auto Expo: Tata Motors looks to play across fuel segments

At the expo, the auto major also unveiled the first hydrogen-cell-fueled truck concept Prima E5.5. It was among the many new concept vehicles, which use alternative fuel and operate in the CV segment, from the company. The others included ones that run on battery electric (fully electric) and natural-gas, and ones that are fuel agnostic.

“Tata Motors would likely to play across the fuel segments given it has introduced products in hydrogen fuel cell, CNG, petrol and BEV segments. The company has lined up series of new launches in the EV segment, where it aims to dominate the market and where the competition is intensifying,” said Piyush Parag, Deputy Vice President Research, Sharekhan by BNP Paribas.

On the company’s electrification push, Parag said, “Tata Motors is strategically focussing on new generation EV products to maintain its dominant position in domestic EV market.” TML’s Generation 3 platform is for born electric vehicles; the earlier Generation 2 platform was a bridge to adapt ICE architecture to be more EV ready.

Avinya, which is being presented a premium hatch with the roominess of an MPV, was built on the company’s Gen3 architecture that is meant for wholly electric vehicles. The concept car has been designed to look futuristic with its smooth surfaces and luxe, with its daytime running lamp, skydome and an expected price point of Rs 30 lakh. In an interview given to CNBC-TV18 at the expo, Shailesh Chandra, President of Passenger Vehicles unit at Tata Motors said that the Avinya is expected to be launched by the end of 2025.

SUV-EV transition

The SUV category is what is likely to see the most disruption from electrification because of the higher end customer profile, which can absorb the higher cost of electrification, and because of the tax differential – GST on ICE SUVs can go up to 50%, while GST on electric vehicles are just 5%. TML is building its portfolio in both categories.

Also read: The latest in stock markets and in-depth analysis

Commenting on the company’s strengths, Parag said, “Though the company remain a small player in passenger car segment, it is gaining significant market share in SUV and EV segment.”

“Rising input cost and fear of negative impact of inflation on demand are the key challenges (for Tata Motors,” he added.