Tata Motors to invest $2 billion to launch 10 new electric vehicles? Details inside
The action is significant in light of private equity company TPG Rise Climate's plan to invest $1 billion in Tata Motors' passenger electric cars subsidiary at a $9.1 billion valuation.
Tata Motors, India's largest vehicle manufacturer, is reportedly planning to invest up to $2 billion (Rs 15,000 crore) over the next four years to launch ten new electric vehicles, just as its passenger vehicles unit, which was in the red a few years ago, hopes to improve and generate free cash flow by 2022-23. It is worth noting that EV usage has increased in India over the last five years, and Tata Motors' strategic focus on EVs coincides with investor pressure to support ecologically beneficial firms. The action is significant in light of private equity company TPG Rise Climate's plan to invest $1 billion in Tata Motors' passenger electric cars subsidiary at a $9.1 billion valuation.
Shailesh Chandra, president of Tata Motors' passenger cars business unit, stated that the automaker has a robust product launch strategy for EVs, with green powertrains expected to account for 20% of sales over the next four to five years.
He went on to say the firm is now booking 3,000-3,500 units per month with only two green goods (Nexon and Tigor EVs). However, the company can only supply about 1,000 units. He went on to say that they are currently working up fresh investments totalling $2 billion for electrics, which would be utilised to add ten new green cars, increase manufacturing capacity, and improve charging infrastructure.
Tata Motors achieved a stunning achievement last month when it onboarded its 10,000th EV client. Thanks to a healthy order book, Tata Motors, which has a market share of more than 70% (year-to-date FY22), surpassed the 1,000-unit volume milestone in August of this year. Early adopters drove the first 10,000 EVs. With their support, Tata Motors has developed a sustainable roadmap for the future and is dedicated to continuing on track with making EVs mainstream, the carmaker stated in a statement.
At the moment, the Mumbai-based coffee-to-cars company is mum about its future product ambitions. However, it is expected that the automaker would electrify some of its existing petrol/diesel cars, such as the Altros hatchback and the recently announced Punch small SUV. Chandra stated that the ten suggested passenger vehicles will include a mix of sedans and SUVs and all-new 'electric exclusively' items. Despite manufacturing issues caused by semiconductor shortages, Tata Motors has averaged monthly sales of roughly 30,000 units in recent months.