In order to deepen its presence in the electric vehicle (EV) space, Tata Motors on Monday commenced deliveries of its light commercial vehicle (LCV) Ace EV. A total of 25 Ace EVs were delivered to Amazon, Delhivery, DHL, FedEx, Flipkart, J&J Consumer Health, MoEVing, and Safexpress.
The electric E-LCV is priced at an ex-showroom price of Rs 9.99 lakh. The company is also providing a 5-year maintenance package, a dedicated response team, and a charging infrastructure ecosystem. CNBC-TV18 exclusively caught up with Girish Wagh, executive director of Tata Motors.
Q: What is the current response of Ace EV after showcasing it last year? How is the order book & when can we expect full deliveries?
We showcased Ace EV last year and then did multiple pilots for 6 months with courier and e-commerce companies. We tested each and every application and applied the necessary changes. Ace EV is a complete package with charging infrastructure, attractive financing options, and a support centre.
This is an important step in decarbonising last-mile and first-mile transportation in urban and semi-urban areas. The demand has been very high and a lot of customer interest is there. Currently, we have 39,000 orders. We are well on track with delivery and will keep on reporting numbers quarterly. We are working on the supply chain to ramp up production. Ace EV will be manufactured at our Pantnagar plant and will utilise the maximum capacity.
Q: Which other segments are you working on to introduce EVs? What are your plans for Green Hydrogen?
We already have a good experience in EV platforms. Currently, we have more than 700 e-buses running in several cities across India. We are evaluating segments to study which one is good to electrify. Those platforms with useful applications and usage will be the first ones to have an EV option. Closed-loop applications make sense for EVs and we are working on them.
Decarbonisation journey in the CV will be through alternative fuels. The green Hydrogen policy is a wonderful step taken by the government which will surely help India towards the 2070 target. We are working on ethanol flex-fuel and fuel cell technology apart from EVs. We have currently got an order from Indian Oil for fuel cell E-Buses, certain prototypes are being tested in Gujarat.
Q: How is the current demand? Has demand rebounded in comparison to pre-covid?
We are seeing a good demand coming back after 2.5 years after COVID-19. The transporters are positive and optimistic and driving demand. Maximum growth is seen in buses this year mainly due to the low base. Quarterly the bus growth might look low in QoQ comparison, but the full-year growth will be higher YoY.
Demand growth will continue in the medium and heavy CV segment. Light commercial vehicle demand dipped majorly during Covid and now the demand is gradually increasing. Overall, demand is likely to be majorly aided by the bus segment.
Q: Expectations from the Union Budget?
The government has been supportive and more than a catalyst to create EV demand. Schemes like FAME and the recent PLIs related EV sector are a boost. We expect current support to continue till EV crosses the threshold. We want current measures and policies for EVs to continue.
Ace EV is the first E-LCV product powered by EVOGEN powertrain that offers a driving range of 154 kilometers on a single charge. Ace EV has a 27kW motor that generates 130Nm of peak torque. The LCV has been launched in Delhi, Pune, and Mumbai and will be soon launched in Bengaluru, and Chennai followed by 5 other cities.
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