Tata Motors has announced that it will be investing Rs 15,000 crore (approximately $2 billion) to broaden its electric passenger vehicles division. The company has said that it will invest the amount over the next four years to launch 10 new electric vehicles. The move comes soon after private equity firm TPG Rise Climate announced plans to invest $1 billion in Tata Motors’s passenger electric vehicles division at a valuation of $9.1 billion.
According to a report by The Times of India, Shailesh Chandra, president of Tata Motors’s passenger vehicles business unit has said that the company has a solid product launch plan for electrics. He also added that the company is expecting around 20 percent of its sales will be driven by green powertrains over four to five years.
Currently, Tata Motors sells two electric vehicles in India, namely Nexon EV and Tigor EV. The company claims to get 3,000-3,500 bookings per month. However, the current capacity is around 1,000 units. According to the report, Tata is currently lining up new investments to the tune of $2 billion just for electric vehicles.
The company claims that the $2 billion will be used to add 10 EVs to the company’s fleet, boost production capacity and charging infrastructure, and create intellectual property.
To recall, back in September, the company had announced that its cumulative sales of EVs had crossed 10,000 units with the main contribution coming from Nexon EV.
While the company has not revealed its future product plans, it is expected to convert some of its existing petrol/diesel vehicles including Altros and Punch into EVs. Additionally, the report states that the upcoming 10 EVs from the company would be a mix of cars and SUVs. It also revealed that the range will include a few ‘born electric’ products.
The company recently launched an upgraded Tigor electric sedan in India, and is currently hoping that the demand for EVs will remain strong as central and state governments offer benefits to promote green technologies and vehicle charging network gets dense.
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