Tata Passenger Electric Mobility Ltd., a subsidiary of Tata Motors Ltd., has lined up multiple launches in the coming years as it strives for profitability amid expectations of a faster transition to electric vehicles.
Tata Motors's overall market share has reached 13.9%, including passenger vehicles and EVs. Share of EVs in the total vehicle sales expanded by 400 basis points to 13% in the last financial year, according to an investor presentation on Tuesday.
The margin in the passenger-vehicle business is expected to expand from 7% in the last fiscal to over 10% by fiscal 2030. The company expects its EV business to become profitable on operating level by fiscal 2026, according to an exchange filing.
Alternative Fuels Drive Growth
The company is one of the early movers in EV space since the coronavirus pandemic. It has sold roughly 1.8 lakh EVs since fiscal 2020 across categories.
The Tata Nexon.ev has been the most successful model, accounting for 44% of all the EVs sold by Tata Motors. It crossed cumulative sales of 80,000 vehicles at the end of the last fiscal. Tiago.ev was the second-most selling model with cumulative sales of 50,000 units.
Alternative fuel has been a strong strategy for the company. Share of compressed-natural-gas vehicles has doubled in fiscal 2024 to 16%, taking the total share of alternative fuel vehicles to 29%.
By fiscal 2030, the company is expecting to have around 45% sales from both the CNG and EVs. The share of EVs would reach 20% of sales specifically. This would indicate that one in every five cars sold by the company would be electric by fiscal 2030, according to the presentation.
Market Share
Tata Motors commands a strong 73% market share in the EVs in India and it will be interesting to see how the company tackles competition this year.
In the CNG-vehicle space, the company has a market share of 24% and is expected to maintain a similar market share by fiscal 2030 as well. Tata Motors is expanding its portfolio with launches like the Nexon iCNG, which is one of the most awaited launches this year.
Maruti Suzuki India Ltd. is one of the strongest competitors in this space and has multiple models across categories of small cars and sports utility vehicles.
Future Guidance
Tata Motors is expected to launch 10 EV models by the next fiscal. The company is launching the Harrier and the Curvv EV this fiscal and will address product gaps as well. In the next fiscal, the much-awaited Sierra EV is expected to be launched as well and the company has said it would address key barriers in terms of range and technology.
The company cited the prices of internal combustion engines, including petrol and diesel, saying that the EV counterparts would converge due to industry developments and newer emission norms. This would help faster transition to electric vehicles as well.
The auto major is also looking to expand to 50 cities with an EV-exclusive channel in a phased manner. It is also looking to leverage synergies between EVs and rooftop solar systems, which will drive increased EV adoption and accelerate their path to net zero. The company is looking to create a bundled offering for EVs and rooftop solar to provide tangible financial benefits to customers.
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