Tata Motors To Increase Strategic Focus On SCV & EV Growth; Enhance Sustainability Practices

Abhijeet Singh
11 Jun 2024
01:41 PM
1 Min Read

The company plans to expand its product portfolio to cover 80% of the total industry volume (TIV) with new nameplates and models while scaling up EV adoption through development of charging infra and collaborations.

Tata Motors To Increase Strategic Focus On SCV & EV Growth mobility outlook

Tata Motors has outlined a robust strategy for its future business by increasing focusing on electric vehicles (EVs), advancing technology and sustainable growth. The company has showcased a significant turnaround in its financial performance for FY24. The company reported increase in revenue by reaching INR 42.1 K Cr which is a notable jump from previous years. This growth is supported by a solid EBITDA, which stood at INR 28.9 K Cr for the year. The company also managed to generate robust free cash flows, indicating a healthy financial position.

Tata Motors' holds a strong position in both commercial vehicles (CV) and passenger vehicles (PV). The CV segment saw a revenue of INR 78.8 K Cr in FY24, while the PV segment generated INR 52.4 K Cr. The company has successfully maintained a strong market share across various sub-segments, including heavy commercial vehicles (HCV), intermediate and light commercial vehicles (ILMCV), and small commercial vehicles (SCV).

A significant portion of Tata Motors' strategy revolves around the expansion and mainstreaming of EVs. The company has already established itself as the leader in the Indian EV market with a 73% market share in EV sales, and aims to increase this EV sales penetration to overall 30% by FY30. Tata Motors has sold over 150,000 EVs, introducing new models like the Nexon.ev and the Tiago.ev, which have become the best-selling EVs in their respective segments.

Tata Motors is heavily investing in product innovation and technological advancements. The company has developed a multi-powertrain strategy, incorporating petrol, diesel, CNG, and electric options. The company is also focusing on advanced technologies like ADAS (Advanced Driver Assistance Systems), connected vehicle platforms, and AI-driven analytics to enhance vehicle performance and customer experience.

Sustainability is a key pillar of Tata Motors' strategy. The company has committed to achieving net zero greenhouse gas (GHG) emissions by 2045. Initiatives include investments in renewable energy, development of hydrogen fuel technologies, and implementation of a circular economy framework. The company has launched the TATVA framework to enhance circularity and has operationalized several vehicle scrappage facilities under the Re.Wi.Re initiative.

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