Tata Motors To Manufacture EVs in Sanand Factory From Coming April

Highlights :

  • The Sanand Factory will see the electric vehicles’ production launch with the Nexon EV.
  • The EV facility was obtained by Tata Passenger Electric Mobility Ltd from Ford India for Rs 725.7 crore in January 2023.
Tata Motors To Manufacture EVs in Sanand Factory From Coming April

Starting April this year, India’s EV giant Tata Motors is set to initiate the production of electric vehicles at the Sanand plant in Ahmedabad, Gujarat, that it had acquired from Ford India. The EV facility, obtained by Tata Passenger Electric Mobility Ltd, a unit of Tata Motors, for Rs 725.7 crore in January 2023, will see the production launch with the Nexon EV.

The information has been revealed by Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles. The manufacturing plant, with an initial capacity of 3 lakh units per annum, already produces internal combustion engine-powered versions of the Nexon and can potentially scale up to 4.2 lakh units per annum. Chandra revealed plans to introduce upcoming models at the same facility.

In terms of the company’s product pipeline, Chandra mentioned the expected introduction of Curvv EV in the second or third quarter of the current calendar year. Additionally, he expressed hopes of unveiling the Harrier EV and the internal combustion engine version of Curvv towards the end of 2024.

Tata Motors projects a 5% growth in the passenger vehicle industry and emphasized the company’s aim to outpace industry growth through planned launches.

As per reports, discussing the Budget wishlist, Chandra advocated for extending FAME benefits to personal electric cars to help spur electrification growth in the country. He highlighted the success of increased electric car sales in states like Maharashtra and Gujarat owing to the role played by incentives given to EV buyers. He also addressed the issue of the inverted duty structure in EVs, stating that it has been a persistent concern.

Regarding talks of providing concessions to a US-based EV major, Chandra emphasized Tata Motors’ focus on a level playing field. He asserted that the company welcomes any player entering the EV space with upfront investment in localization or charging infrastructure development, expressing confidence in effectively dealing with competition without fear.

Tata’s Stature in EV Market

According to Federation of Automobile Dealers Associations of India (FADA) data for the fiscal year 2023, Tata Motors maintained its position as the leading player in the electric vehicle (EV) segment, holding the largest market share in India. In 2023, Tata Motors dominated the domestic EV market with a 72% share, outperforming competitors such as MG Motors (10.8%) and Mahindra (9%). The most popular models contributing to this success were the Tiago, Nexon, and Tigor from Tata Motors.

During FY2023, Tata Motors entered into Memoranda of Understanding (MoUs) with three fleet operators, securing orders for a total of 45,000 Xpres-T sedans. The agreements were with Blusmart Mobility (10,000 units), Uber Technologies (25,000 units), and Lithium Urban Technologies (5,000 units). Experiencing a remarkable surge, sales skyrocketed from 19,106 units in FY2022 to 47,792 units in FY2023, marking a substantial 150% increase.

Anticipating continued growth, Tata Motors is poised to sell approximately 85,000 units of EVs in the current financial year, with a significant focus on the personal vehicle segment.

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