Tata Motors to invest Rs 24,000 crore in passenger vehicles business

MUMBAI: On a roll after becoming the top SUV maker in India — ahead of traditional heavyweights Hyundai, Maruti and Mahindra & Mahindra — Tata Motors is lining up one of its biggest investment plans for its passenger vehicles business as looks to pump in more than Rs 24,000 crore over the next five years, a large part for scaling up the fast-growing electrics division.
Shailesh Chandra, the man spearheading the turnaround of the company in both the petrol/diesel as well as the electrics market, says that Tata Motors has been getting heavy bookings for models such as the Punch and Nexon SUVs, as well as the electric offerings, though shortage of semiconductors has been limiting customer deliveries.
“We have a strong order book, but the shortage of semiconductors has been a limiting factor for us till now. Despite the best of efforts, we have a backlog of around 4-5 months across models, though efforts are on to improve this position,” Chandra — MD of Tata Motors’ passenger vehicles and passenger electric mobility businesses — told TOI as he unveiled a concept of the company’s new electric coupe Curvv that hits the market in 2024.

Tata Curvv (1)

Chandra said that a large part of the future investments will be directed towards electrics, where the company plans to invest Rs 15,000 crore by 2025 as it wants to have a fleet size of ten green cars by 2025.
Currently, it sells the electric versions of the Nexon and Tigor, and would now add eight new products over the coming years, including some that would be developed ground-up as only electrics.
However, while building the electrics business, the company will not lose sight of the internal combustion engine (or ICE) business, where it sells petrol- and diesel-powered vehicles which currently includes hatchbacks such as Tiago and Altroz, SUVs Punch, Nexon, Harrrier and Safari, and mini sedan Tigor.
Chandra said that along with electrics, the ICE business will also be adequately scaled up, and upgrades as well as new products will be launched in the volume-laden category too.
Speaking about investments in the non-electric business, he said that on an average the company will spend around 5-7% of its domestic revenues towards the category. Total investments in the non-electric PV category are likely to be over Rs 9,000 crore over the next five years, taking its overall investment commitment to more than Rs 24,000 crore in passenger vehicles.
About the production output at factories in Pune (Maharashtra) and Sanand (Gujarat), he said the company wants to “de-bottleneck” capacities to squeeze out more numbers. “We are taking steps to boost our production by at least 25% from the existing locations. This would help us produce more, though it all depends on semiconductor availability.”
Tata Motors’ domestic volumes grew a healthy 67% in FY22, and closed the year at 3.7 lakh units against 2.2 lakh units in FY21. Chandra said that the company expects to grow strongly during this fiscal, and is banking on demand for its SUVs and electrics. “We are poised for growth and there is no reason we will go down.”
Tata unveils Curvv EV coupe concept
Tata Motors unveiled a concept of an electric coupe called Curvv and said that the vehicle – which will have a single-charge range of up to 500 kms – will be launched in the next two years.
Shailesh Chandra, MD of Tata Motors’ passenger vehicles and passenger electric mobility business, said that apart from electric, the model will also be followed by internal combustion versions.
The Curvv is likely to be placed over the Nexon EV, and will be third EV from the company’s stable.

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