Tata Motors' goals to bifurcate its fossil-fuel and EV bizz take off as EV volumes boost

25 Oct 2023 , 02:37 PM

Tata Passenger Electric Mobility Ltd (TPEML), Tata Motors’ EV business, will begin selling electric vehicles through specialized sales channels in select cities in the coming months, as well as through a shop-in-shop concept at its existing sales channels.

The TPG Rise-backed company will also begin producing internal combustion engine (ICE) models and electric vehicles (EVs) at its Sanand factory in 2024 as part of Tata Motors’ ambitions to clearly separate the ICE and EV businesses, according to the company’s chief executive.

TPEML paid Rs 725.7 crore for Ford India’s Sanand facility in August 2022 and finalized the transaction in January 2023. The Sanand facility has a manufacturing capacity of 3 lakh units per year, which may be expanded to 4.2 lakh units per year.

The first two EV-only stores will open in Gurgaon. According to a person familiar with the company’s intentions, they are expected to be operating by March 2024. Tata Motors’ whole model lineup, including EVs and ICE, will expand significantly, necessitating the separation of sales channels.

Tata Motors sold 37,961 EVs in the first fiscal half of FY24, up 76% year-on-year, and expects sales to reach 100,000 by the conclusion of FY24. EVs accounted for 8.77% of total passenger car sales in FY23, up from 5.12% in FY22. It was 13.58% in the first half of FY24.

 

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