The chief financial officer of the auto division of the Tata Group has revealed that the company is considering opening factories in India and Europe to produce battery cells for electric vehicles (EVs).
Tata Motors in India leads the country's EV market having sold 50,000 electric cars so far is about to introduce ten electric cars by March 2026. By 2025, the company anticipates that electric vehicles will account for 25% of its total sales, up from 8% currently.
On the sidelines of India's Auto Expo car show in Greater Noida, Uttar Pradesh, Tata Motors' P.B. Balaji stated that localising cell manufacturing for EV batteries is essential for increasing local components in electric cars and will also assist the automaker in developing a local supply chain.
In order to meet the battery cell requirements of its luxury car unit Jaguar Land Rover, which has a manufacturing facility in Europe, Tata is evaluating two production bases.
Balaji said that Tata Sons, the company's parent, will invest in cell manufacturing, but he didn't say how much or when.
India's automobile market, which is on track to become the third largest in the world, is relatively small in comparison to the country's population. Last year, about 3.8 million cars were sold in the country, and the government hopes to increase this to 30% by 2030.
Balaji stated that Tata is also concentrating on increasing the profitability of its EV business and anticipates that the company's EV business will be cash flow positive by 2025.
Tata Motors is attempting to consolidate its lead at a time when rivals such as Mahindra & Mahindra, Warren Buffet-backed BYD, and SAIC Motor's MG Motors have lined up EV launches.
FAQs
Q1. Who manufactures Tata EV battery packs?
Tata Green Batteries is a 50/50 partnership between Tata AutoComp Systems and the Japan-based GS Yuasa Corporation.
Q2. Which EV brand sells the most units?
In 2021, Tesla was the brand of electric cars that sold the most. Tesla sold just under 936,200 plug-in electric vehicles worldwide in that year.
