The country’s largest electric carmaker, Tata Motors, has tempered its target of EVs comprising half its overall sales by 2030. At its Investor Day 2024 presentation, the company said it expects EVs to contribute 30 percent of its volumes by the end of the decade due to the slowing growth in the segment. Despite this, the contribution of EVs to Tata's total sales will far exceed the 20 percent level seen for the industry.
The company has estimated that the Indian passenger vehicle market will hit annual sales of 6 million units by FY30, and it will be gunning for an 18-20 percent market share overall. This means Tata is likely to sell 1-1.2 million units a year, of which EVs would contribute to 3-4 lakh EV units; over four times its current annual sales of 73,000 units.
Tata EV sales on a downward trend
Despite the introduction of the Nexon EV facelift and the Punch EV, Tata Motors' monthly EV volumes have remained around 5,500-7,000 units in the last couple of quarters. FY25 has started negatively, with sales declining year on year in April and May.
While electric powertrains account for 2 percent of the passenger vehicles sold in the industry, CNG contributes 15 percent. By the end of this decade, Tata Motors expects this to grow to 20 percent and 25 percent, respectively. The automaker is planning to invest between Rs 16,000-18,000 crore in its electric vehicle business until FY30.
Tata Motors also plans to expand its EV-exclusive retail channel “.ev” to over 50 key cities over the next two years. In addition, the automaker will strengthen its charging infrastructure by installing public as well as community EV chargers across India.
Tata Motors currently sells the Tiago EV, Tigor EV, Punch EV and Nexon EV. The Curvv EV is set to launch this festive season, with the Harrier EV following next year.
With inputs from Kiran Murali
Hormazd Sorabjee
Anurag Chaturvedi
