Competition should lead to market expansion: Tata Motors MD at Bharat Mobility Global Expo
At present, Tata Motors currently commands the domestic EV market with more than 60% market share.
- Jan 18, 2025,
- Updated Jan 18, 2025 8:30 AM IST
Tata Motors, the country’s largest electric vehicle manufacturer, is bracing for stiff competition with a slew of EV launches by automakers such as Maruti Suzuki, Hyundai, BYD and Mahindra & Mahindra at the Bharat Mobility Global Expo on Friday. However, the company says that the increase in competition would only mean more options for consumers as well as expansion of EV ecosystem. The company unveiled its most-awaited Sierra EV at the Bharat Mobility Global Expo.
“Competition had to come earlier. It has come a bit late, but possibly it is also coming at a time when the EV prices are also coming closer to the ICE prices because of the overall cost structure coming down,” told Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Motors Electric Mobility.
“Competition is a good thing because it is going to expand the market,” he adds.
At present, Tata Motors currently commands the domestic EV market with more than 60% market share. According to Chandra, EV market is likely to get segmented into two broad categories, “One is a city EV for city use, and the second would be a versatile use with higher range vehicles. But for city use, a 30-40 kW/h kind of battery pack will be very apt. The competitive intensity and action are more on the segment higher than Rs 18-20 lakh is growing very fast, but city-EVs, there are still very few cars that are there in the market,” notes Chandra.
In the recently announced PM e-Drive scheme, the government has excluded the fleet segment from subsidies. Chandra believes that the inclusion of the fleet segment under the scheme would have led to faster adoption of EVs. According to Chandra, despite a reduction in the cost of lithium-ion cell prices, the fleet operators are unable to get rid of the ICE vehicles.
“So definitely, this (PM e-Drive scheme) would have helped in faster adoption of the fleet towards electric vehicles. Let's imagine that the price of the cell, which has fallen to the level where it is, would have reduced the price of EVs. On top of that, if there was a FAME incentive, it would have been a killer for this segment. I would say that opportunity has gone away. But as far as the price is concerned, now, what amount from FAME that fleet segment was getting, I think we are able to compensate to some extent,” says Chandra.
Tata Motors, the country’s largest electric vehicle manufacturer, is bracing for stiff competition with a slew of EV launches by automakers such as Maruti Suzuki, Hyundai, BYD and Mahindra & Mahindra at the Bharat Mobility Global Expo on Friday. However, the company says that the increase in competition would only mean more options for consumers as well as expansion of EV ecosystem. The company unveiled its most-awaited Sierra EV at the Bharat Mobility Global Expo.
“Competition had to come earlier. It has come a bit late, but possibly it is also coming at a time when the EV prices are also coming closer to the ICE prices because of the overall cost structure coming down,” told Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Motors Electric Mobility.
“Competition is a good thing because it is going to expand the market,” he adds.
At present, Tata Motors currently commands the domestic EV market with more than 60% market share. According to Chandra, EV market is likely to get segmented into two broad categories, “One is a city EV for city use, and the second would be a versatile use with higher range vehicles. But for city use, a 30-40 kW/h kind of battery pack will be very apt. The competitive intensity and action are more on the segment higher than Rs 18-20 lakh is growing very fast, but city-EVs, there are still very few cars that are there in the market,” notes Chandra.
In the recently announced PM e-Drive scheme, the government has excluded the fleet segment from subsidies. Chandra believes that the inclusion of the fleet segment under the scheme would have led to faster adoption of EVs. According to Chandra, despite a reduction in the cost of lithium-ion cell prices, the fleet operators are unable to get rid of the ICE vehicles.
“So definitely, this (PM e-Drive scheme) would have helped in faster adoption of the fleet towards electric vehicles. Let's imagine that the price of the cell, which has fallen to the level where it is, would have reduced the price of EVs. On top of that, if there was a FAME incentive, it would have been a killer for this segment. I would say that opportunity has gone away. But as far as the price is concerned, now, what amount from FAME that fleet segment was getting, I think we are able to compensate to some extent,” says Chandra.