Tata Motors To Invest $2 Billion in Electric Vehicles The move assumes significance in the wake of private equity firm TPG Rise Climate's decision to infuse $1 billion in Tata Motors's passenger EVs
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Tata Motors is all set to take the electric vehicles (EVs) industry by storm.
The company will invest as much as $2 billion over the next four years to launch 10 new EVs as its broader passenger vehicles division—which was in losses a few years ago—hopes to generate free cash flow by 2022-23, reported The Times of India.
The move assumes significance in the wake of private equity firm TPG Rise Climate's decision to infuse $1 billion in Tata Motors's passenger EVs at a valuation of $9.1 billion.
Shailesh Chandra, president of Tata Motors's passenger vehicles business unit, said, "The company has a strong product launch plan for electrics, with expectations of 20 per cent sales coming from green powertrains over four to five years."
"With just two EVs right now (Nexon and Tigor), we are getting bookings of 3,000-3,500 units per month. However, we are able to supply only around 1,000 units. We are now lining up new investments to the tune of $2 billion just for electrics and this would be used to add 10 new green vehicles, boost production capacity and charging infrastructure and create intellectual property(IP)," Chandra added.
Chandra mentioned that 10 proposed passenger vehicles will be a mix of cars and SUVs, adding that this would also include "electric only' products.
Last month, Tata Motors recorded a feat of on-boarding its 10,000th EV customers. With over 70 per cent market share (year-to-date FY22), Tata Motors has crossed the 1,000 units in August this year with a strong order book. The first 10,000 EVs have been led by the early adopters and with this encouragement Tata Motors has built a viable roadmap for the future and is committed to staying on course with making EVs mainstream, the automaker mentioned in a statement, said a report.
Tata Motors is averaging monthly sales of around 30,000 units over the past few months despite production problems due to semiconductor scarcity.Chandra told TOI, "It is expected that with Punch — a mass selling product— the company's monthly volumes may cross 40,000 units, almost challenging Hyundai's position as the second-largest car seller in India."