Tata Motors to scale EV platforms; shares jump 9pc in afternoon trade
Tata Motors, which owns iconic brands such as Jaguar and Land Rover, and known for launching the world's first affordable car, the Nano, on Tuesday said it will focus on launching several variants of affordable EVs. This comes at the backdrop of its rise in market share in the overall passenger car segment from 4.7 to 7.7 percent.
The news also helped the automobile manufacturer's stock price to jump 9.7 percent to Rs 241.45 on the Bombay Stock Exchange (BSE) on Tuesday afternoon.
The Indian passenger car market, whose market size is three million cars per annum, is going to be focused on several OEMs launching EVs, especially after the Indian government announced a slew of subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles - II (FAME-II) scheme.
According to the Society of Automobile Manufacturers (SIAM), over the last year, Tata Motors has sold more than 2,400 units of the Nexon EV.
According to sources familiar with the matter, the idea behind working on more electric vehicle platforms has been fuelled by Tata Motors' strategy to collaborating with other Tata Group companies. In fact, EV platforms are "central" to the strategy of Tata Motors in the future, they said.
In recent days, Tata Power has been helping the brand set up charging infrastructures while Tata Motors is also working with Tata AutoComp to develop battery packs. It is also utilising Tata Chemicals' capabilities of lithium-ion batteries to build an EV ecosystem.
Tata Motors has also set up a platform called the ‘Tata uniEVerse,’ which helps customers with Tata EVs to connect with customer service and gather data about their cars. Tata offers the Nexon EV in three variants priced in the range of Rs 13.99 lakh and Rs 16.25 lakh (ex-showroom).
Its 30.2kWh battery pack powers an electric motor that packs 129PS/245Nm. The Nexon EV has a range of 300km on a single charge.
Other competitors in this segment include MG Motors, Hyundai, and Mahindra and Mahindra. In 2021, M&M will launch its affordable EV SUV to compete with Tata Motors.
As for now, Tata Motors has had a head start in the Indian EV sector in FY2021.
Edited by Suman Singh