Tata Sons Ltd, the parent company of Tata Motors, is also looking into opportunities to invest in lithium-ion cell manufacturing in India and Europe in order to establish a proper supply chain for its zero-emission vehicles in the coming decade, according to N. Chandrasekaran, the chairman of Tata Sons, which controls the Tata group.
Tata Motors Ltd plans to introduce 10 electric vehicles across its commercial and passenger vehicle businesses in India over the next four years, according to the company’s chairman, as the country’s largest vehicle manufacturer seeks to capitalize on the growing domestic market for eco-friendly vehicles.
With governments throughout the world pressuring corporations to develop and produce EVs in order to minimize their carbon footprint, automakers are focusing on providing sustainable transportation solutions, including more battery-electric and hybrid-electric choices.
In India, EV penetration in their portfolio has more than quadrupled to 2% this year, and they expect it to grow dramatically in the future years as stated by Mr. Chandrasekaran. Tata Motors will be at the forefront of this transformation in the Indian market.
Tata Motors will have 10 new BEV (battery electric cars) by 2025, and as a group, they will spend proactively to set up charging infrastructure across the country, Chandrasekaran stated in the company’s 2020-21 annual report.
He stated that Tata Sons is considering establishing an automotive software and engineering vertical within the Tata group to enable it to dominate in the field of connected and autonomous automobiles.
Tata Motors presently manufactures the Nexon EV vehicle under its own brand. The I-Pace EV variants are manufactured by Jaguar Land Rover in their United Kingdom unit.
JLR revealed its move to a fully electric future earlier this year with the ‘Re-imagine strategy,’ in which the business will rebrand and rebuild Jaguar as an all-electric premium automobile brand by 2025. Similarly, Land Rover will transform into a manufacturer of luxury electric sport utility cars (SUVs).
By 2030, EVs will account for 60% of Land Rover’s annual sales. JLR aims to phase out the selling of combustion engine vehicles by 2036 as part of their goal of being a “net zero carbon enterprise” by 2039.
JLR also announced its intention to write down investments of Rs 15,000 crore allocated for developing internal combustion vehicles, which proved unviable following the company’s shift to electric vehicle technology.
Tata Motors, according to Chandrasekaran, is in the midst of changing its fundamental business model to sustainable mobility, with JLR aiming for zero tailpipe emissions for all vehicles sold by 2036.
“With these moves, Tata Motors will be well-positioned to capitalize on the opportunities created by these fundamental shifts.” Your company will be the torchbearer for green mobility in the automotive industry, creating a virtuous cycle of growth and profits for our stockholders as well,” he added.
The Mumbai-based manufacturer recorded a significant rebound in operating performance in the third and fourth quarters of FY21, fueled by increasing JLR vehicle sales in key countries.
It does not expect the growth momentum to continue in the medium term, however, because production will be hampered by a global scarcity of semiconductor parts, a vital component in modern automobiles.
Meanwhile, the disruptions caused by Covid’s second wave have impacted Tata’s domestic commercial vehicle industry, which was showing signs of life in the second part of the last fiscal year.
The passenger vehicle industry, on the other hand, is likely to rebound quickly in the next months, owing to a growing preference for personal transportation to avoid illnesses and new product options.
In the short term, the pandemic’s impact is projected to progressively fade as more people are vaccinated. They anticipate that demand will remain high, with consumer tastes shifting even further toward personal mobility.
However, the supply situation is projected to worsen in the next months due to disruptions from Covid-19 lockdowns in India and global semiconductor shortages, Chandrasekaran warned.
