Tata Motors plans to increase production of electric vehicles as demand increases

Tata Motors is looking to increase production of electric vehicles as demand continues to outpace manufacturing activity by a huge margin, according to a senior company official.

The Mumbai-based automaker, which has dominated the domestic electric passenger vehicle space in the past financial year, has received an average of 5,500-6,000 bookings over the past two months for its range of electric vehicles. .

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

In an interaction with PTI, Tata Motors General Manager of Passenger Vehicles and Electric Vehicles Shailesh Chandra noted that huge demand for its range of electric vehicles has resulted in a backlog of orders from customers.

“We are seeing demand considerably outstripping supply. The numbers are only what we are able to supply, demand is certainly much higher which is reflected in the number of bookings with us,” he said. he stated about the VE request scenario.

The acceptance of electric vehicles is there, over the past two months the company has received an average of 5,500 to 6,000 bookings per month, he added.

The company, however, was able to supply around 3,300 to 3,400 units last month, Chandra said. “So every month there is a backlog (of orders) for us,” he said.

Chandra noted that the company is trying to increase capacity by increasing supply of semiconductors. The company has initiated various steps such as design changes as well as sourcing from multiple vendors to increase the availability of critical semiconductors.

“These steps allowed us to significantly increase production. Just seven months ago, we produced only 600 units, but such actions helped us increase it to 1,500-1,700 levels, and then to 3 000-3,500 levels. This will continue,” Chandra mentioned.

Asked about the sales aspirations for this year, Chandra said, “Last year we grew fivefold, and so the aspiration would definitely be to grow not in increments but in multiples.”

According to FADA, Tata Motors led the electric passenger vehicle segment in 2021-22 with retail sales of 15,198 units and an 85.37% market share in the vertical.

When asked if electric vehicle sales could be 30% of overall passenger vehicle sales by 2030, Chandra said, “I think demand can be significantly higher than 30%, because when the point of inflection is reached, growth is absolutely out of control.”

The main factors that will limit growth will be the pace of supply ramp-up and the development of capacities and ecosystems, he added.

“From a demand perspective, we’ve seen it explode in no time. Despite various ramp-ups, we’re still not able to meet demand. So we think demand will definitely rise above that mark. 30%,” Chandra said. Noted.

(Edited by : Jomy Jos Pullokaran)


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