Tata Motors targets one lakh EV sales in FY24, says senior official

2 Aug 2023 , 10:04 AM

Tata Motors, India’s biggest EV producer, expects to sell approximately one lakh electric vehicles by the end of the year, according to PB Balaji, group CFO, during the first-quarter earnings call. In the first quarter, the Mumbai-based automaker sold 19,000 electric vehicles.

EVs increased 104% year-on-year in the first quarter, accounting for Rs 2,400 crore in revenue of the company’s total passenger vehicle sales. In the June quarter, the company sold 19,000 EVs, up from 9,000 in the same period last year.

Consolidated EBITDA fell by 80 basis points (bps). According to the company, margins fell mostly due to two factors. Firstly, the Indian Premier League put Tata Tiago on full display, resulting in a large order inflow for the company that will not be present in the second half of the year.

Second, the price of lithium in batteries has risen significantly in the last nine months. However, the management expects prices to fall beginning in the current quarter.

The company has also made progress in terms of obtaining subsidies. Tata Motors has applied for incentives for its Tiago EV through the government’s production-linked incentive (PLI) program. The company has applied for all Tiago versions, which just passed the 10,000-unit sales mark.

At around 9.59 AM, Tata Motors was trading 0.84% lower at Rs 638.25, against the previous close of Rs 643.65 on NSE.

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