With the new EV subsidiary, Tata Motors will be looking to bolster its presence in EV space
One of the early entrants in EV space, Tata Motors currently leads with market share of around 70%. A significant percentage of the company’s EV sales comprise Tata Nexon EV. Tata Motors also has Tigor EV, which was recently updated with visual enhancements and more capable powertrain. The company’s cumulative EV sales had crossed the 10k milestone earlier this year in September.
As competitive in EV space is expected to increase significantly in coming years, Tata Motors feels it will be better to step-up focus in this segment. Towards that end, Tata Motors has formed a new wholly-owned subsidiary named Tata Passenger Electric Mobility Limited (TPEML). The new entity will commence operations with initial capital of Rs 700 crore. Necessary approval for the new arm has been received from Ministry of Corporate Affairs.
TPEML focus areas
TPEML will cater to all aspects of R&D, design, development, manufacturing, assembly, fabrication, sales, marketing, after sales services and servicing of electric vehicles. This will be applicable for hybrid electric vehicles as well. The company will look into design and development of motors, parts, components, accessories and other related equipment.
It can also consider development of other types of vehicles that are powered by electricity or solar energy. This indicates that TPEML has a much larger agenda in mind and is not limited to manufacturing of passenger EVs.
Threat from rivals
EV ecosystem in the country is developing at a fast pace. Quite a few electric cars are now available here such as Jaguar I-Pace, Porsche Taycan, Audi e-Tron GT and Mercedes-Benz EQC electric SUV. These are not a threat to Tata Motors current EV portfolio, but things can change if and when the company decides to target the premium EV space.
Talking about Tata’s bestselling Nexon EV, it is expected to face some stiff competition soon. Carmakers like MG Motor, Kia, Hyundai and Mahindra are working on their respective entry-level electric cars. For example, Hyundai has plans to introduce six new EVs in India. At least one of these will rival Tata Nexon EV.
MG Motor is also said to be working on a mass-market EV that will rival Nexon EV. MG’s second EV for India is expected to be priced in the range of Rs 10-15 lakh. MG currently has the ZS EV in India, which is the second bestselling EV in the country.
TPEML will be actively evaluating all these emerging threats. It will collaborate with its parent company to add more EVs to the existing portfolio. A lot of work also needs to be done in terms of upgrading existing powertrain and boosting range. Other things such as compliance with new safety rules and development of Advanced Driver Assistance Systems (ADAS) and autonomous driving tech could also be on the agenda.