Tata Motors to invest over $1 billion in CV business
According to sources, Tata Motors, the country’s largest truck manufacturer, has set aside more than $1 billion (about Rs 7,500 crore) over the next 4-5 years to recraft its commercial vehicle road map, with electric vehicles at its core.The corporation that has dominated the passenger electric vehicle (EV) market is now switching to new-age platforms that will produce futuristic EVs in the commercial vehicle (CV) market. These vehicle architectures will be able to support CNG, LNG, and diesel powertrains, which is a big departure from the past, when fossil-fuelled vehicles were re-engineered to manufacture EVs.
According to Girish Wagh, executive director of Tata Motors’ commercial vehicle business, the company intends to lead and advance electrification in the industry, much as it did with conventional powertrains in the past. It is developing a range of solutions for short-range battery-operated vehicles for the last mile with modest CV offers, as well as gas-based fuel-cell electric vehicles for longer ranges. Prior to that, however, the transition to CNG will be rapid.
“Initially, gaseous fuel will be used to electrify CVs. There has been a noticeable movement toward CNG, and the enhanced distribution (of CNG) is projected to continue. With a revamped modularity strategy, we’ve re-examined the entire spectrum and applications on which we need to work and prioritise at the back end “”A lot of effort is happening on creating solutions with real-world experiences,” Wagh added.Wagh, on the other hand, refused to comment on the amount of investment anticipated or any plans to establish an EV subsidiary, referring to such discussions as “speculation.”With the induction of senior marketing professionals like Shubranshu Singh, who joined from Royal Enfield, and former Ford India managing director Anurag Mehrotra, who will lead the company’s international business and strategy, the new roadmap is being put in place at the same time as the company is revamping its sales and marketing interface.
Wagh believes that total cost of ownership parity in favour of electric vehicles versus diesel vehicles will occur sooner, but that it will take EVs a little longer than CNG vehicles.Apart from the last mile, certain steel and cement firms have requested electric vehicles for mining purposes, and the corporation has already begun developing a solution.While there is no firm plan to create an independent division for Tata Motors’ electric CV business, industry analysts believe it is likely inevitable. At Tata Motors, the current focus is on having a robust product portfolio and growing a client base in order to maintain a healthy valuation.To be sure, Ashok Leyland, Tata Motors’ closest competitor, is already searching for an investor for its EV business, which is known as Switch Mobility.
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