Electric Vehicle Penetration in SCV-Pickup Segment Nears 10%, Says Tata Motors

Electric vehicle penetration in the small commercial vehicle and pickup segment has reached close to 10 percent, according to Tata Motors, with the company expecting adoption to improve further in the second half of FY27.

Higher diesel and CNG prices have strengthened the total cost of ownership case for electric commercial vehicles by allowing them to achieve parity with conventional vehicles earlier in their operating life.

“EV penetration has reached close to 10 percent in SCV pickups,” Girish Wagh, managing director and CEO, Tata Motors, said during the company’s Q1 FY27 media call.

“Since the increase in prices of diesel and CNG, TCO parity of electric vehicles has become even earlier in the life cycle. Therefore, EVs have become more attractive,” he added.

Tata Motors has seen a significant increase in demand for smaller electric commercial vehicles. It is also receiving more enquiries from customers evaluating the electrification of light, intermediate and heavy commercial vehicle fleets.

“We expect that as we move towards the latter half of the year, this penetration will improve,” Wagh said.

Demand Spreads to Tier 2 and Tier 3 Towns as Charging Network Grows

Demand is also spreading beyond the large urban markets that initially led electric commercial vehicle adoption. Tata Motors said its electric small commercial vehicles were increasingly being sold in Tier 2 and Tier 3 towns as the charging network expanded.

The company is working with several partners to increase charging availability. Wagh said the expansion of the charging network had gathered momentum, supporting electric commercial vehicle sales outside metros and large cities.

Tata Motors' Electric Commercial Vehicle Order Book and Government Deals

Tata Motors reported orders for more than 3,400 electric commercial vehicles during the June quarter across freight, logistics and passenger mobility. It also has an electric bus order book of around 850-900 units from government and private customers.

Government orders include buses for Chennai, Ahmedabad, Odisha and Hyderabad. Tata Motors has started deliveries and expects to execute most of the order book during Q2 and Q3, with some deliveries extending into Q4.

Battery Cell Shortage Pressures EV Supply Chain

The increase in demand has, however, created pressure on the electric vehicle supply chain. Tata Motors is facing shortages of some imported materials, particularly battery cells, which require longer procurement lead times.

The company has initiated measures to improve component availability and expects the bottlenecks to ease progressively.

“Towards the end of Q2, we will see even the EV supply chain getting debottlenecked,” Wagh said.

Tata Motors said its electric commercial vehicle range, extending from the Ace Pro to a 55-tonne tractor, has been engineered in India and meets domestic value-addition requirements.