Tata Motors, holding a 71% market share in India’s passenger vehicle segment from April to November 2023, initially aimed to double its electric vehicle (EV) sales to 100,000 units in FY2024. However, due to challenges related to inadequate charging infrastructure, the company is now expected to reach around 75,000 units this fiscal year, reflecting a robust 56% year-on-year growth.
In the first eight months of FY2024 (April-November 2023), Tata Motors achieved total EV sales of 48,187 units but acknowledged that reaching the initial target by March 2024 may not be feasible. Despite this, the company is committed to getting as close to the target as possible. Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility (TPEM), emphasised the importance of setting ambitious goals to drive planning and execution in areas such as product identification, charging infrastructure growth, and market expansion.
Tata Motors aims for 30% EV penetration in sales by 2025 and 50% by 2030. While the company experienced a remarkable 150% increase in EV sales from 19,106 units in FY2022 to 47,792 units in FY2023, it recognises the challenges associated with moving from early-majority to late-majority EV owners.
Chandra highlighted the upcoming introduction of higher-range EVs in 2024 and the strengthening of charging infrastructure as factors that will address range anxiety and boost EV adoption in India. Despite certain obstacles, he expressed optimism about the EV sector’s growth, projecting a year-on-year growth rate of 90-100% in CY2023 and estimating overall passenger EV sales of 90,000-95,000 units by the end of the calendar year.
Anticipating a 40% year-on-year growth in CY2024 for the Indian electric passenger vehicle market, Chandra emphasised the need for continued government support, including the low 5% GST rate and road tax waivers in several states. He urged the government to sustain its backing until EV penetration reaches 20%.
Tata Motors has expanded its EV retail footprint, adding 160 more cities in the last 12 months and inaugurating two flagship EV-exclusive showrooms in Gurugram on December 21. The company plans to open 50-100 more such stores across the country in the next 12-18 months. With 10 new all-electric product launches scheduled until 2025, Tata Motors aims to be a diversified player in the passenger EV segment, offering a range of models across different price points and battery ranges.