Tata Motors’ plans to bifurcate the fossil-fuel based and EV biz take off as EV volumes expand
Tata Passenger Electric Mobility Ltd (TPEML), the EV arm of Tata Motors, will start selling electric vehicles through dedicated sales channels in select cities over the next few months and have a shop-in-shop concept at its existing sales channels.
The TPG Rise-backed firm will also commence making internal combustion engine (ICE) models and EVs at its Sanand plant in 2024 as part of Tata Motors’ plans to clearly bifurcate the ICE and EV business, the company’s top executive said.
TPEML acquired Ford India’s Sanand plant in August 2022 and completed the acquisition in January 2023 for Rs 725.7 crore. The Sanand plant has a manufacturing capacity of 3 lakh units per annum is scalable to 4.2 lakh units per annum.
“The Sanand 2 plant will get operationalized next year.
As far as the channel separation is concerned, we will not have a big bang approach—we will go city by city. It would see a micro-market based approach going one by one so that we are able to stabilize,” Shailesh Chandra, managing director Tata Motors Passenger Vehicle and TPEM, told ET.
The first two EV exclusive outlets are coming up in Gurgaon.
They are likely to get operational by March 2024, said a person aware of the company’s plans. Tata Motors overall line-up of models, both EVs and ICE, will go up substantially making the separation of sales channels inevitable.
Tata Motors sold 37,961 EVs in the first fiscal half of FY24, up 76% y-o-y, and envisages sales to touch 100,000 units by the end FY24.
The share of EVs in its total passenger vehicles sales rose to 8.77% in FY23 from 5.12% in FY22. It stood at 13.58% in H1 FY24.
The maker of Tiago.ev and Nexon.ev models leads the EV market with a shareof 75% and is set to launch the electric Punch by
