Twenty percent of Tata Motors' revenues to come from EVs in FY24
New Nexon EV along with Punch, Harrier and Curvv EV to help the company expand the addressable customer base.
Tata Motors, the country's largest electric car maker is on course to generate close to a fifth of its turnover from electric vehicles in FY24. This would mean that the company may cross US$1.3-1.5 billion in annual turnover or Rs 10,000 to Rs 12,000 crore, and inch towards profitability, as the brand moves towards its target of 1 lakh units sales in the current financial year.
With the launch of all new Nexon EV and incremental sales expected from new models like the Punch EV, Harrier and Currv EV, the company will see the share of electric vehicles moving up from 14 percent currently, to about 20 percent by the end of the year.
In Q1 of FY24, the EV business already accounted for 20% of its total revenues, and with the incremental volumes and revenues is likely to go only up.
Shailesh Chandra, MD of Tata Passenger Electric Mobility said, "The game plan is to continue to grow the market by offering more options across price points and driving range options. With the new Nexon, we hope to increase the adoption rate."
To ensure that the company evolves itself to the changing consumer needs, Tata Motors enhanced its flagship product in EV with a new mid-cycle enhancement, which is significantly revamped on all elements of design, safety, technology, and performance, claims the company.
In order to focus on EV customers, which the company claims are different from the internal combustion engine vehicle buyers, Tata Motors has launched a dedicated EV brand called DOTEV (or EV), which may come with its own retail outlet.
During the first quarter of FY24, the company sold about 19,000 units, more than doubling over last year, with incremental volumes coming in from its entry electric vehicle Tiago. The entry hatch EV today accounts for a third of its total volumes.
The company has a presence in over 185 cities with 275 outlets and these are being backed by 6500 charging stations to ensure peace of mind of ownership or the consumers.
During the April to June quarter, the electric vehicle business delivered a turnover of Rs 2,400 crore with a negative EBITDA of 9.7% due to investments the company has made into readying its existing plants for new products and development expenditure.
Chandra declined to give guidance on volumes or profitability but said that the scale effect of around 1 lakh units, falling battery prices and benefits emanating out of production-linked incentive scheme will help the company boost its margins and profitability.
The Chairman of the company, N Chandrasekaran had announced at the AGM that Tata Motors will be adding electric powertrains to Punch, Harrier and Curvv in the coming few quarters. This will help Tata Motors expand its portfolio to half a dozen vehicles spread across Rs 9 lakh to Rs 30-35 lakh price point addressing different customer base.
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