Tata Motors, India’s largest electric vehicle (EV) manufacturer, is prioritizing locally produced EV batteries to reinforce its position as competition in the sector intensifies. Group CFO P.B. Balaji highlighted the company’s $1.5 billion investment in a domestic battery gigafactory, emphasizing its role in securing the supply chain and reducing costs.
“Our focus on building the entire ecosystem positions us as a strong player in this market,” Balaji said during India’s car show, where Tata’s EVs were showcased alongside models from global manufacturers such as BYD and Vinfast.
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Tata Motors’ EV market share declined to 62% in 2024 from 73% in 2023, as competitors like JSW MG Motor gained traction. New players, including Mahindra & Mahindra, Hyundai Motor, and Maruti Suzuki, are also preparing to launch EVs in India, while Tesla continues to explore entry into the market.
Tata Motors benefits from its integration with the broader Tata Group, which supplies components and establishes charging infrastructure, enabling it to offer EVs priced between $10,000 and $27,000. By 2026, Agratas, the battery division of Tata Group, plans to begin production of lithium-ion battery cells in Gujarat, with full-scale production expected by 2028. This will provide greater control over one of the most significant cost factors in EV production.
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While Tata Motors has focused on an integrated approach, other automakers such as Mahindra, Maruti Suzuki, and Hyundai rely on external suppliers for batteries and components. Tata Motors has also secured $1 billion in funding from U.S. private equity firm TPG and expects approximately $750 million from India’s EV incentive program over the next four years.
EVs accounted for 2.5% of the 4.3 million cars sold in India in 2024, with sales growing 20%, significantly outpacing the overall market’s 5% growth. Analysts project EV sales to double in 2025, supported by new product launches. Tata Motors, which reported 12% of its 2024 sales from EVs, aims to increase this figure to 30% by 2030, leveraging its ecosystem and competitive pricing to bolster its market position.
Source: Reuters