Electric vehicle (EV) sales in India could skyrocket to an annual figure of 10 lakhs by the decade’s close, as forecasted by Tata Motors. The company also envisions these eco-friendly vehicles comprising half of their sales by then.
This Mumbai-based automotive giant recently celebrated the milestone of selling over 1 lakh EVs. Current data shows electric models account for 14-15% of their total quarterly sales.
Reflecting on the exponential growth, Shailesh Chandra, the Managing Director of Tata Motors Passenger Vehicles, noted, “Five years back, electric vehicles used to sell just 90 units a month. Today these sell 8,500 to 9,500 units a month, which is like 100 times more…five years back the industry had sold about 2,000 cars and we are talking about already an annualized run rate this year of more than one lakh units so it’s a 50 times growth.”
Chandra, leading the passenger electric mobility sector, highlighted that the increased focus on charging infrastructure and the growing interest of other automakers in the EV sphere indicates promising and sustained expansion.
Tata Motors’ electric roster features the Tiago EV, Nexon EV, and Tigor. Their ambitious EV strategy intends to cater to a wide array of consumer preferences through diverse designs at varied price points. Anticipation builds as the company recently unveiled its next-gen EV models, including the Curvv, Harrier EV, Sierra EV, and Avinya, at the Auto Expo 2023.
Even with new market entrants, Chandra stresses that Tata Motors’ core ambition lies in volume expansion. Their monthly unit sales began the year at 3,500 and have now surged to around 6,500. By the end of June, their commanding presence was evident with a 71% market share based on vehicle registrations.
Emphasizing the need for policy support, Chandra highlighted the critical role of EVs for personal use in the FAME scheme to meet CO2 emission reduction goals. He further stated that the lion’s share of EV demand, about 90%, emerges from the personal segment.
Introduced in 2019, the FAME-II scheme allocated a Rs 10,000 crore budget to boost the adoption of electric and hybrid vehicles. Chandra praised Maharashtra and Gujarat state governments for their proactive incentive strategies, leading to a substantial sales uptick.
Peering into the future, Tata Motors, along with other entities in the Tata Group, contemplates initiating local battery production.
Chandra further showed his optimism about Tesla’s debut in the Indian market, “Any competition is not be seen as a threat but it is a reality in which you have to compete and therefore the focus will be that we are agile to what the competition is doing and how can we deliver a differentiated product to the customer.” He believes that the 1 lakh sales achievement reflects India’s thriving EV ecosystem.
Chandra ended on a high note, emphasizing that this swift progress promises employment opportunities across various sectors, improved air quality, reduced dependence on oil, and positions India as a pivotal hub for EVs and related components.
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