By the conclusion of its fiscal year, which ends March 31, Mumbai-based automaker Tata Motors hopes to sell 50,000 electric vehicles, according to Natarajan Chandrasekaran, the company’s chairwoman.
According to Chandrasekaran, as reported by Reuters, Tata — which manufactures luxury automobiles, trucks, vans, coaches, buses, passenger cars, and construction equipment — hopes to reach 100,000 EV sales in the 2023–2024 timeframe.
The move toward EVs is in line with a national initiative to increase the percentage of electric passenger vehicles sold in India to up to 30% by 2030 from its current 1 percent level. 80 percent of two-wheeler sales, up from 2 percent today, will be made up of e-scooters and e-bikes.
The success of domestic manufacturing will be crucial in encouraging Indians to transition to electric vehicles due to the government’s hefty import taxes on EVs.
Tesla appears to have given up on attempts to establish a factory in India after attempting to sell its EVs there.
When entering new markets, Tesla typically takes the “try before you buy” strategy, importing cars to gauge demand before devoting the necessary time and resources to establishing local manufacturing.
Tesla hasn’t pushed further with those plans since Nitin Gadkari, the country’s transport minister, said the manufacturer was welcome to build a factory there but couldn’t import vehicles from China for sale and servicing.
Currently, Tata sells three electric vehicles (EV) models: the Nexon EV, Tigor EV, and the most recent Nexon EV Max.
Tata claims that by recycling a popular internal combustion engine model, the Nexon, and replacing it with a battery pack, it is able to keep costs low for the Indian consumer, in contrast to the strategy many U.S. manufacturers have adopted of establishing new EV production lines from the ground up.
Although not precisely affordable for the average Indian motorist, Nexon’s starting price of $19,000 is unquestionably within reach of the nation’s upper-middle class.
Tata controls 90% of the market for electric vehicles in India and seems to be on track to meet its target of selling 50,000 EVs by March 2022.