Tata Motors is confident of its best-selling EVs and is looking to introduce them in global markets amid a pushback against Chinese electric cars.
"We have the ability to take these products global," Shailesh Chandra, the managing director of Tata Motors' EV and PV businesses, told NDTV Profit during an interaction in Mumbai on Wednesday. "It is about where we would like to focus first-there is a big growth opportunity in India but a bigger opportunity globally because most of the electric vehicles in developed countries are priced above $30,000. What we [Tata Motors] have right now is world-class products, all less than $30,000."
"We are investing big time in technology, so I clearly see an opportunity."
There has been a significant pushback against Chinese cars globally and bodies like the EU plan to increase tariffs on Chinese EVs, to as high as 48 per cent in some cases. USA announced a plan to hike the tariffs against Chinese EV by four times, to 102.5 per cent last month. Canada is working on something similar.
What this does is, create more opportunities for a company like Tata Motors, since of its products, like the Nexon EV, has similar economies of scale as that of Chinese electric cars. One should also take note of the fact that Hyundai Motor India Limited (HMIL), Tata's closest rival, is planning for an IPO, which will lead down to Hyundai making India an EV manufacturing hub. But Shailesh Chandra is not worried about it.
"I wouldn't depend too much or even consider the current trade barriers as a key part of our strategy. We should never bank on them because they can always change," he said.
With a market share of over 70 per cent in India's EV segment, Tata Motors has a strong model line-up, with the likes of Tiago, Tigor, Punch and the Nexon in its portfolio.
Presently, Tata Passenger Electric Mobility Pvt. Ltd. is now a billion-dollar enterprise that turned EBITDA positive in FY2024.
The EV unit clocked a revenue of Rs. 9,300 crore in the financial year ended March 31, 2024, according to its annual report. In volume terms, wholesales-despatches to dealerships from the factory floor, rose 47.5 per cent year-on-year to 73,844 units in FY24.
"With cumulative 150,000 EV production, a milestone achieved by few car manufacturers globally, we sold three out of four electric cars in India last year," Chandra said in a letter to shareholders in the annual report.
"Structurally, I feel that we have an opportunity [to go global], and we are actively looking into the opportunity," Chandra told NDTV Profit. "When we would've frozen our international strategy-hopefully in a few months-and received board approval, then I will be able to more openly express."
Source: NDTV Profit