EVs to comprise 15-17% of Tata Motors’ volumes in CY24
With the introduction of the Punch.ev, the company expects growing demand for its EV model lineup which is slated to be further expanded with the introduction of two more EVs in CY24.
Homegrown automaker, Tata Motors, which is the leading electric vehicle (EV) manufacturer in the country with a market share of over 75 percent, expects strong demand for its latest all-electric model – the Punch.ev. The carmaker clocked its best-ever EV sales of 69,153 units in CY23, registering a robust 62 percent year-on-year (YoY) growth of 62 percent (CY22: 43,451 units).
The entry-e-SUV which expands the company’s EV portfolio to four products – Tiago EV, Tigor EV, Nexon EV, and Punch EV – will allow it to tap into another vacant space in the evolving EV segment in India’s passenger vehicle market with an all-rounder product. “We have received more bookings than expected for the Punch EV, and we expect a huge surge in demand after the price announcement,” Shailesh Chandra, Managing Director, Tata Passenger Electric Mobility (TPEM), and Tata Motors Passenger Vehicles, said on the sidelines of the launch on January 17.
January 17 also saw the facelifted Tata Nxon EV bag the Variant/Update of the Year title at Autocar Awards 2024.
Tata Motors' new EV manufacturing plant in Sanand, Gujarat, adds manufacturing capacity of 300,000 units, scalable to 420,000 units per annum
The company anticipates waiting periods to creep in for the Punch EV, but is also geared to ramp up capacity at its newly-operational plant in Sanand, Gujarat, to bring the delivery times under control, and within reasonable timeframes. “We are prepared to ramp up capacity starting the second half of this month, and we are hopeful of keeping the waiting periods within a reasonable number of months,” Chandra added.
Tata Motors, which currently sees EV volume contribution in its portfolio being pegged at around 12-15 percent (17-20 percent in terms of revenues), expects it to reach 15-17 percent by the end of CY24, with two more models – the Curvv EV and Harrier EV – lined up for introduction during the ongoing calendar year. The company will further expand its EV lineup by introducing the Sierra EV and Altroz EV next year.
However, given the creation of a good base in terms of EV sales in CY23, the company anticipates EV growth rate in the industry to moderate going forward. “Two years back, the EV segment was growing on a low base, registering growth rates to the tune of 100 percent and 150 percent, with CY23 itself closing at nearly 100 percent YoY growth. But given that the EV industry will develop a base of around 100,000 units by end-FY24, the future growth would moderate to be in the range of 40-45 percent."
"Given that we (Tata Motors) are going to launch more products, including the Harrier EV by end-CY24, we aspire to grow higher than the market,” Chandra pointed out.
“With the PV industry growth in FY25 likely to be in low single digits – around 5 percent or below – Tata Motors’ EV growth will be quite healthy,” he added.
With the switch to Gen-2 ground-up EV architecture – Acti.ev – with the Punch.ev, Tata Motors says its magnitude of investment in EVs has increased multifolds, “But it is happening at a time where the company’s EV volumes have reached a certain level. This ensures that we do not destroy value, and it gives new capabilities, primarily allowing offering higher-range products like the Punch EV, in a smaller footprint,” Chandra mentioned.
Tata Motors believes the Punch EV is uniquely positioned between the Tiago EV and Nexon EV in its portfolio, and targets the young buyer eyeing an all-rounder product. “With almost 65 percent buyers being less than 35 years in age, tech-savvy, and having a certain price point in mind, if one offers a product with a high value, it is bound to create a new customer segment for this kind of an EV, which, with its over 400km range, does not limit the car purely for city use,” he said.
“The Nexon and Tiago EVs have seen very different customer bases, with the former being used as a primary car, but in a multi-car household, while the latter being a 320km-range product getting primarily used within the city with limited outdoorsy experiences. The Punch EV sits right in between the two," Chandra stated.
"There is no such product below Rs 15 lakh so far, and therefore, there is not going to be significant cannibalisation within our portfolio,” he further highlighted.
The company aims for an EV penetration in its portfolio to touch 25 percent over the next three years, and reach 50 percent by 2030.
To offer unique buying experiences to discerning EV customers, Tata Motors opened two of its flagship EV-exclusive stores in Gurugram earlier this month, and aims to expand the exercise with more such outlets in key markets across the country in the next 12-18 months.
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