Tata Motors is gearing up to launch its all-electric SUV, the Tata Avinya, with a projected price tag of around Rs 25 lakh, sources directly aware of the company’s plans told Moneycontrol. They spoke on condition of anonymity. The five-seater SUV, designed by Tata Passenger Electric Mobility Limited (TPEML), was first unveiled in April 2022 and marks the debut of Tata's "Gen 3 architecture."
Responding to a query from Moneycontrol, a Tata Motors spokesperson said:” We have indicated that the first vehicle under the Avinya series is expected in FY27. We’ve not indicated anything on the pricing of the vehicle. We typically talk about it at the launch.”
The sources cited above said that the company, currently India’s largest passenger EV manufacturer, is positioning Avinya as a direct competitor to Tesla’s Model 3. The Model 3, expected to be priced above Rs 30 lakh in India, remains the most affordable car from the Elon Musk-founded company. Tesla, according to sources, is preparing to enter the Indian market this year, with sales expected to commence as early as April. The company is initially expected to import vehicles directly from its Gigafactory in Berlin-Brandenburg, sources added.
Notably, this marks a significant policy shift for the Indian government, which had previously insisted that Tesla set up manufacturing facilities in India or face high import tariffs. However, India is now expected to grant significant duty concessions to U.S. manufacturers that choose to export to India from overseas locations, with deliberations in this regard currently underway between the two countries.
A new era for Tata Motors?
Developed in India for a global audience, Tata Motors claims that Avinya’s architecture prioritises high structural safety along with advanced waterproofing and dust protection, making it well-suited for diverse terrains, particularly Indian conditions. According to Tata Motors, the battery technology supports ultra-fast charging, enabling a minimum range of 500 km in under 30 minutes.
Avinya, the company says, incorporates next-generation materials, efficient electronic components, and proprietary energy management strategies to optimise efficiency in the premium electric vehicle segment.
Moneycontrol reported in May last year, citing people aware of the matter, that Tata Motors Ltd, which is separating its commercial vehicle (CV) and passenger vehicle (PV) businesses, is also considering an eventual merger of its electric vehicle business—currently a step-down subsidiary—with the PV unit after the demerger exercise concludes.
Over recent years, Tata Motors’ CV, Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses have implemented distinct growth strategies. Since 2021, these businesses have been functioning independently under their respective CEOs, Tata Motors said.
While there are limited synergies between the commercial vehicle and passenger vehicle businesses, the company sees significant synergies across petrol, diesel, and electric PVs, as well as with JLR, particularly in areas such as autonomous vehicles and vehicle software, which the demerger is expected to facilitate.
A growth market
Elon Musk has long expressed interest in entering the Indian market, given its high growth potential. India's Electric Vehicle (EV) sector is expected to witness rapid expansion, fueled by government incentives and technological advancements.
India has set ambitious targets for EV adoption: 30% of private car sales, 70% of commercial vehicle sales, 40% of bus sales, and 80% of two-wheeler and three-wheeler sales are expected to be electric by 2030. This translates to a goal of having 80 million EVs on Indian roads by the end of the decade. Additionally, India aims for full-scale domestic EV production under the ‘Make in India’ initiative.
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