Tata Motors Unveils ₹18,000 Crore EV Plan, Says MD Shailesh Chandra

Tata Motors plans to invest ₹18,000 crore in its electric vehicle (EV) business over the next few years. This move aims to expand its EV portfolio and develop an ecosystem for these vehicles. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Motors Electric Mobility, shared these details and provided insights into the company’s growth expectations and strategies.

EV Sales Growth and Targets

Chandra anticipates that electric vehicle sales in the local market will grow ten-fold over the next five years. However, this growth will likely fall short of the government’s initial target of 30% of new car sales. Chandra stated, “We expect electric vehicles to make up 20% of new car sales in the industry, while we aim for 30-40% of our sales to be electric by FY30.”

Previously, Tata Motors expected half of its sales volumes to come from EVs during this period.

Expanding Market Share and Product Range

Tata Motors aims to increase its market share in passenger vehicles from 13.9% in FY24 to 18-20% by FY30, driven by a mix of CNG and EVs. Chandra explained, “Currently, with seven products, we address 53% of the market and hold a 26% market share in our addressable market. By FY30, we plan to cover 80% of the market.” This expansion will include new model launches and upgrades of existing products, with upcoming releases like the Curvv EV, Curvv ICE (internal combustion engine), and Sierra EV expected in the next two years.

Demerger for Focused Growth

Tata Motors Group CFO P Balaji noted that the proposed demerger of Tata Motors’ commercial vehicles (CV) business will help the two resulting companies concentrate on their growth strategies. Post-demerger, the CV business will reinvest its cash flows into its strategic goals, while the passenger vehicles (PV) business, which has recently become self-sustainable, will target 10% EBITDA (earnings before interest, taxes, depreciation, and amortization) margins across its combustion engine and electric vehicle segments.

Jaguar Land Rover will remain with the PV arm and is expected to become debt-free by next year. The demerger is expected to be completed by the first quarter of the next fiscal year.

Future Outlook

Girish Wagh, Executive Director of Tata Motors Commercial Vehicle, is optimistic about the CV business’s performance over the next five years. He attributes this to rising disposable incomes, government infrastructure spending, and initiatives to boost the manufacturing sector’s GDP contribution, which will increase freight and passenger movement.