Tata Motors will invest Rs 7,500 crore in five years in commercial vehicles (CV) as it seeks to recast the business and focus on electric vehicles (EV), the Economic Times reported on Thursday citing "people in the know".
The company intends to lead the EV segment in the commercial market as it did with conventional powertrains before, Girish Wagh, executive director--commercial vehicle business unit, told the newspaper. He expects electrification in CVs to happen first through gaseous fuels like CNG.
Tata Motors is working on a range of options for short-range battery-operated vehicles for the last mile with small CV offerings and gas-based fuel-cell electric vehicles to cater to the more extended range, said the paper.
Ashok Leyland, Tata’s rival, recently said it's in the market to look for an investor for the EV business under Switch Mobility.
Encouraged by the demand for electric vehicles in the last mile delivery segment, Tata Motors will be launching an EV model for the segment soon. It is working with the e-commerce companies to understand their requirements with regards to range and performance, Wagh said in a media interaction last month.