TaMo evaluating both CNG, hybrids for larger cars, SUVs above 4 metres

Tata Motors says its strong EV-CNG mix keeps it well within CAFÉ compliance, but it is studying CNG use up to 4.3 metres and exploring strong hybrids for larger cars and SUVs if segment competitivenes

Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, which draw 45 per cent volumes from alternative or cleaner technologies such as CNG, EV etc, said that they are ‘well protected’ under Corporate Average Fuel Efficiency (CAFÉ) norms and hybrids do not need to be CAFÉ compliant.

 

However, Tata Motors Passenger Vehicles is also evaluating both CNG and strong hybrid options for its larger cars and SUVs that are above 4 metres in length. As for CNG, the company is closely watching the 4.3 metres space, while larger cars are a ‘natural starting point’ for hybrids. 

 

Speaking to reporters after the Q2 results, Shailesh Chandra, managing director and chief executive officer (CEO) of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said: “We have always been clear that our technology mix is strong. About 45 per cent of our current portfolio comes from alternative technologies, and this will grow further. By 2030, we expect more than 30 per cent of our cars to be EVs. So, we are well protected under CAFÉ norms. Hybrids are not needed for CAFÉ compliance.”

 

At present EVs constitute 17 per cent of volumes, and 28 per cent of the revenues. 

 

The CAFÉ framework sets fleet-wide carbon-dioxide emission targets for automakers in gram/km, with penalties for non-compliance from the Bureau of Energy Efficiency (BEE). 

 

Over the weekend, Tata Motors also unveiled the upcoming Sierra SUV, to be offered in both ICE and EV versions — reviving a nameplate first introduced in 1991.

 

Chandra added that they will be ‘proactive’ on electrification and ‘reactive’ on hybrids -- only if competitiveness in specific segments demands it.

 

CNG is a growing segment for TaMo, which has sold 120,000 units in 2024 calendar, and is inching towards 150,000 units this calendar.

 

CNG has replace diesel in smaller segments, and sub-4 metre cars have thus seen the maximum shift, Chandra said. “We have not seen much traction for CNG in bigger cars because diesel is still available and remains the preferred choice due to better torque and performance. Customers in higher segments look for superior performance, and hence diesel continues to dominate,” he added.

 

“We believe CNG is relevant up to about 4 metres; may be up to 4.3 metres. Beyond that, for bigger SUVs, performance expectations go up and CNG tends to underperform,” he said, adding that therefore, their strategy is to focus on CNG for all cars below 4 metres, but they are watching the 4.3-metre segment closely.

 

“If we see demand, we may extend CNG offerings there as well,” he said.

 

On hybrids, the strategy is ‘reactive’, which means they are studying the market from a competitiveness point of view. “If diesel becomes comparable to hybrid in certain segments, and if consumers show interest in hybrids for performance or efficiency reasons, we will consider it,” Chandra told reporters.

 

“From a technology perspective, we are fully ready — we can introduce hybrids when required,” Chandra said.