Tata Motors aims for EVs to make up 15-17 percent of its volume in 2024

Tata Motors recently launched Punch EV, and has Curvv, Harrier EVs lined up for introduction in 2024.

Published On Jan 18, 2024 01:54:00 PM

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Tata Motors aims for EVs to make up 15-17 percent of its volume in 2024

Tata Motors, which currently holds over 75 percent of electric vehicle market share, expects strong demand for its latest all-electric model – the Punch EV. The carmaker clocked its best-ever EV sales of 69,153 units in CY23, registering a robust 62 percent year-on-year (YoY) growth (CY22: 43,451 units).

Tata expects 50 percent of total sales from EVs by 2030
Tata EV line-up expected to expand to 8 models by 2025
Positioning of Punch EV should see little overlap with Tiago EV or Nexon EV

Tata Motors’ expanding EV line-up

The electric SUV, which expands the company’s EV portfolio to four products – Tiago EV, Tigor EV, Nexon EV and Punch EV – will allow Tata Motors to tap into another vacant space in the segment. In the ongoing calendar year, it has the Curvv and Harrier EVs lined up for introduction, while next year, it will further expand its EV line-up with the Sierra EV and Altroz EV.

Tata Motors currently sees EV volume contribution being pegged at around 12-15 percent (17-20 percent in terms of revenues), and expects it to reach 15-17 percent by the end of 2024. It expects EV penetration in its portfolio to touch 25 percent over the next three years, and reach 50 percent by 2030.

‘Punch EV uniquely positioned to target younger buyers’: Shailesh Chandra

The company anticipates waiting periods to creep in for the Punch EV, but is also geared to ramp up capacity at its newly operational plant in Sanand, Gujarat, to bring the delivery times under control, and within reasonable timeframes. “We are prepared to ramp up capacity starting the second half of this month, and we are hopeful of keeping the waiting periods within a reasonable number of months,” said Shailesh Chandra, managing director of Tata Passenger Electric Mobility (TPEM) and Tata Motors Passenger Vehicles.

As the company switches to Gen-2 ground-up EV architecture – Acti.ev – with the Punch EV, Tata Motors says its magnitude of investment in EVs has increased multifold. Tata Motors believes the Punch EV is uniquely positioned between the Tiago EV and Nexon EV in its portfolio, and targets the young buyer eyeing an all-rounder product.

“With almost 65 percent buyers being younger than 35, tech-savvy, and having a certain price point in mind, if one offers a product with a high value, it is bound to create a new customer segment for this kind of an EV, which, with its over 400km range, does not limit the car purely for city use,” Chandra said.

He further said that the Nexon and Tiago EVs have very different customer bases – the former is used as a primary car, but in a multi-car household, while the latter – a 320km-range product – is primarily used within the city with limited outdoorsy experience. “The Punch EV sits right in between the two. There is no such product below Rs 15 lakh so far, and therefore, there is not going to be significant cannibalisation within our portfolio,” he further highlighted.

Last month, Tata Motors opened two of its flagship EV-only stores in Gurugram, and aims to expand the exercise with more such outlets in key markets across the country in the next 12-18 months.

Also see:

Tata Punch EV deliveries to commence from January 22, 2024

Tata Punch EV variant-wise features explained

Tata Punch facelift launch confirmed for 2025