The company has sounded out vendors on an assured production plan of 50,000 EVs in fiscal 2023 and scale it up to 125,000-150,000 units annually in the following two years, said several people aware of the matter.
If it is able to deliver on the targets, the EV business could potentially generate revenue of ₹5,000 crore for Tata Motors in FY23 itself, justifying the steep valuation at which it sold a stake in the EV business to the PE fund.
With bookings for 15,000 vehicles and plans of launching three affordable electric cars in the sub-₹10 lakh range in the coming 12-18 months, the maker of the Nexon EV is confident of scaling upon its early advantage. Apart from a new Nexon EV with a higher range (mileage), Tata Motors has lined up an all-new Tiago EV, as well as the electric versions of the Punch small SUV and Altroz hatchback in the under-₹10 lakh range, which will likely bring in new buyers over the next two years. The company’s EVs are expected to offer a minimum range of 200 kms per full charge.
Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said the company will keep expanding into new cities and by adding products to increase accessibility, but he did not share specifics. “We will be launching one or two products every year, which will be at different price points which will increase affordability. Nexon is our core today, you will see action below Nexon as well as above the product in the coming years,” said Chandra.
He declined to give any guidance on the production and the sales plan, but reiterated that the long-term vision of the company is to make 20% of its total sales from electric vehicles. Tata Motors chairman had announced plans of launching 10 EV models by FY26, in his address to shareholders in FY21.
Meanwhile, passenger vehicle market leaders Maruti Suzuki and Hyundai Motor India aren’t expected to launch mainstream EVs in India before 2024-25, which means less competition for Tata Motors until then.