You are here: Home » Companies » Industry
Business Standard

Tata Motors plans to ramp up EV production as demand spikes

The Mumbai-based automaker has been receiving an average of 5,500-6,000 bookings in the past two months for its EV range

Tata Motors | Electric Vehicles

Press Trust of India  |  New Delhi 

e-Nexon to contribute 5% of company's PV sales soon: Tata Motors CFO

is looking to ramp up the production of as demand continues to outpace the manufacturing activity by a huge margin, according to a top company official.

The Mumbai-based automaker, which led the passenger electric vehicle space in the domestic market in last fiscal year, has been receiving an average of 5,500-6,000 bookings in the past two months for its EV range.

The company sells three electric products -- Nexon EV, Tigor EV and XPRES-T -- in the domestic market. It has also recently unveiled a coupe style SUV which it plans to launch in the next two years.

In an interaction with PTI, Managing Director Passenger Vehicle and Shailesh Chandra noted that huge demand for its EV range has led to a backlog of customer orders.

"We are seeing that the demand is significantly outpacing the supply. The numbers are just the ones which we are able to supply, the demand is definitely much stronger which is reflected in the number of bookings with us," he said when asked about the EV demand scenario.

The acceptance of EVs is there, in the last one-two months, the company has been getting an average of 5,500-6,000 bookings per month, he added.

The company, however, was able to supply just around 3,300-3,400 units last month, Chandra said.

"So every month there is a backlog (of orders) for us," he stated.

Chandra noted that the company is trying to ramp up the capacities by increasing the sourcing of semiconductors.

The company has initiated various steps like design modifications as well as sourcing from multiple vendors to increase the availability of the essential semiconductors.

"These steps have allowed us to significantly ramp up production. Just seven months ago we were producing just 600 units but then such actions have helped us to increase it to 1,500-1,700 levels and then 3,000-3500 levels. This will continue," Chandra said.

When asked about sales aspirations for this year, Chandra stated: "Last year, we grew by five folds, and therefore the aspiration would be definitely to grow not in increments but in multiples."

As per FADA, led the electric passenger vehicle segment in 2021-22 with retails of 15,198 units and a market share of 85.37 per cent in the vertical.

When asked if sales could account for 30 per cent of overall passenger vehicle sales by 2030, Chandra noted: "I would believe that the demand can be significantly higher than 30 per cent level because when the inflection point is hit then the growth is absolutely uncontrollable."

The main factors which will limit the growth will be the pace of supply ramp-up and capacity and ecosystem development, he added.

"From a demand perspective, we have seen it shot up in no time. Despite various ramp-ups, we are still not able to meet the demand. So the demand will definitely, we believe, go beyond this 30 per cent mark," Chandra noted.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, April 11 2022. 15:04 IST