MUMBAI: According to a top executive, Tata Motors would invest up to $2 billion (Rs 15,000 crore) over the next four years to introduce 10 new electric cars, while its larger passenger vehicle sector — which was losing money until recently — wants to turn around and produce free cash flow by 2022-23.
TPG Rise Climate, a private equity group, has announced plans to invest $1 billion in Tata Motors’ passenger electric car sector, valuing it at $9.1 billion. Tata Motors’ passenger vehicles business unit president, Shailesh Chandra, said the firm has a robust product launch strategy for electrics, with green powertrains expected to account for 20% of sales in four to five years.
“Right present, we’re getting bookings of 3,000-3,500 units each month with just two green goods (Nexon and Tigor EVs).” However, we can only deliver about 1,000 units… “We are already setting up fresh investments worth $2 billion just for electrics, which will be utilised to add 10 new green cars, increase manufacturing capacity and charging infrastructure, and produce IP (intellectual property),” Chandra told TOI today.
In September, the business said that total electric sales had surpassed 10,000 units, with Nexon accounting for the majority of the sales. It just released an updated Tigor electric sedan, and it expects high demand for EVs to continue as the federal and state governments give incentives to encourage green technology and the vehicle charging network expands.
While the business has been tight-lipped about future product plans, it is thought to be exploring electrifying some of its existing petrol/diesel vehicles, such as the Altros hatchback and the recently introduced Punch small SUV.
The ten new passenger vehicles, according to Chandra, will be a combination of automobiles and SUVs. “This would undoubtedly include the ‘born electric’ items, which would be entirely designed EVs,” he added when asked if this would include all-new ‘electric only’ things. Tata Motors’ larger passenger vehicle sector has also witnessed a boost in sales, with high demand for models including the Nexon SUV, Tiago and Altros SUVs, as well as luxury off-roaders Harrier and Safari.
Despite manufacturing difficulties caused by chip shortages, the business has been selling roughly 30,000 units each month for the previous several months. According to Chandra, the Punch, which is a popular product, will bring in even more significant inflows to the company’s domestic volumes. Tata Motors’ monthly sales are likely to exceed 40,000 units with Punch, virtually eclipsing Hyundai’s status as India’s second-largest vehicle seller.
He believes that increasing the percentage of SUVs in the company’s portfolio, which might reach 60% in the future years, will help profitability.