Tata has always developed products that are sensitive to the needs of Indian consumers.
The future of the automobile is here.
According to a report in The Hindustan Times, globally electric vehicle (EV) Sales will reach 4.6 million units in 2021, surpassing hybrid vehicle sales for the first time.
According to Reportlinker’s market research report, from 2022-2030, the electric vehicle market size is forecasted to grow at a compound annual growth rate (CAGR) of 21.7% globally.
The report estimates that electric vehicle sales will reach 39.2 million units by 2030.
The Indian electric vehicle market is not far behind. India could be the third largest electric vehicle industry in the world by 2030.
You read it right. India’s Leading Electric Vehicle Companies is driving this megatrend.
Electric vehicle sales in India are up 168% year-on-year to around 300,000 units in 2021. This is thanks to government initiatives such as the FAME program, the PLI-ACC program and the program. battery swap.
The government’s push for electric vehicles is part of its mission to achieve net zero emissions by 2070.
One factor hindering the dramatic increase in electric vehicle sales, despite the many incentives, is price.
The starting range for petrol cars is Rs 250,000 in India, while EVs (non-Tata) start at over Rs 2 million.
On the issue of sustainability and affordability, who is better equipped to promote India’s green mobility than the Tata group?
Tata has always developed products that are sensitive to the needs of Indian consumers. Hence people trust it more than any other brand.
The team’s goal is to provide consumers with a service or solution that is both viable and viable.
Although, shareholders of companies in the group make good money while investing like no Tata group penny stocks available.
Tata Motors was one of the first companies to develop an all-electric commercial vehicle on its own.
Keeping the price factor in mind, the company has released the most affordable EV in the Indian market with a starting price of Rs 1 million.
Electric mobility is here to stay and India’s $103 billion Tata conglomerate is once again leading the revolution in the country.
How? Let’s see together…
#1 Tata Motors
First on the list of companies belonging to the Tata group is Tata Motors.
The company is leading the electric vehicle revolution with over 80% market share in passenger electric vehicle sales. It sells three EVs – Tata Nexon EV, Tata Nexon EV Max and Tata Tigor EV.
Over the past few months, Tata Motors has spun off its passenger vehicle business. It has also formed a separate EV-focused arm, Tata Passenger Electric Mobility.
Tata Passenger Electric Mobility has committed to investing $2 billion in electric vehicles over the next few years.
The new EV arm is a property light and contains only technology and intellectual property. For a fee, the passenger car division continues production.
In October 2021, private equity group TPG invested $1 billion in Tata Motors’ electric vehicle division. The after-money valuation is $9.1 billion.
The country’s electric vehicle market leader has seen its volume increase continuously year on year. In fiscal year 2020, Tata Motors sold 1,000 EVs while in 2021 this number increases to 5,000 units.
The company has seen exponential sales growth in 2022 as it sold nearly 20,000 units, boosting autonomous e-mobility.
Meanwhile, Tata Motors has spoken to suppliers about a guaranteed production plan of 50,000 EVs for 2023.
#2 Tata Power
Next on the list is Tata Power.
For EV infrastructure in India, Tata Power is EVs, Samsung is Android. This is the first company to set up an electric vehicle charging station.
The company has partnered with Tata Motors to provide home charging solutions for every electric vehicle owner.
It has installed nearly 15,000 home chargers and nearly 2,000 public chargers in more than 160 cities and intercity highways.
In addition, the company also offers fleet-fee vehicles along with flat-fee for public transport and buses at their depot.
In February 2022, Tata Power partnered with Apollo Tires to deploy public charging stations in commercial and passenger vehicle zones spanning the country.
In April 2022, the company signed a memorandum of understanding with the National Real Estate Development Council to install up to 5,000 EV charging points on member development sites in Maharashtra.
In line with Tata Power’s ‘Do Green’ mission, the company completed the installation of 150 green energy-powered EV charging stations across Mumbai.
The company has also joined forces with real estate companies such as Kolte Patil, Vatika Group, and Rustomjee group, among others, to install electric vehicle charging stations in their properties.
Enthusiasm for EV charging infrastructure has enabled Tata Power to deliver electrified performance over the past year.
#3 Tata Chemicals
Third on the list is Tata Chemicals.
The company plays an important role in the Tata Group’s EV ecosystem. Tata Chemicals provides know-how in battery technology and has a manufacturing plant in Gujarat.
Tata Chemicals has signed a Memorandum of Understanding with the Indian Space Research Organization (ISRO) to transfer ISRO’s lithium-ion cell technology. The company will acquire the technology to understand its lithium-ion cell manufacturing capabilities in India.
The company currently has no plans to set up a battery plant for electric vehicles as confirmed by Tata Group Chairman N Chandrasekaran during the recent AGM.
Although, Tata Chemicals will provide its expertise to the companies in the group regarding lithium carbonate, a key ingredient in EV batteries.
Furthermore, the company signed a Memorandum of Understanding with the Center for Materials for Electronic Technology (C-MET) to develop collaborative technology for recycling lithium ion cells/batteries.
Tata Chemicals has established a circular economy in its lithium-ion battery business by launching recycling operations.
By recycling Li-ion batteries, the company recovers valuable materials and provides sustainable solutions.
#4 Tata Elxsi
Last on the list is Tata Elxsi.
The company is one of the world’s leading providers of design and technology services across industries, including automotive, television, media, healthcare and transportation.
The company focuses on applying technologies such as Internet of Things (IoT), Cloud, Mobile, Virtual Reality and Artificial Intelligence to design cutting-edge products for its customers.
Tata Elxsi provides an advanced driver assistance system (ADAS) technology platform to automotive original equipment manufacturers such as Tata Motors.
ADAS technology assists the driver in driving and parking functions using artificial intelligence.
The company has partnered with TCS, to promote cutting-edge product research and design, particularly in relation to ADAS systems and connected car technology.
Tata Elxi owns a wide range of products for the automotive industry including the rapidly growing electric vehicle segment.
* Virtual-Drive is the company’s IP solution that provides lab-based environment authentication of Autonomous Driving and ADAS algorithms.
* eMobility HILS is the company’s lab-based framework. It validates EV systems like Battery Management, Inverters, DC-DC converters, etc.
Many companies in the automotive industry are optimizing system performance by combining Machine Learning and Artificial Intelligence with sensor matching.
The growing demand for electric vehicles will prompt manufacturers to create advanced models of the future. The company’s dedicated design team and technology will continue to give the team an edge.
Tata Elxsi has been delivering extraordinary returns to investors over the past few years.
The way forward…
The EV push has led the aforementioned Tata group companies to deliver excellent returns to their investors.
Take a look at the table below showing the one-year performance of the Tata group companies:
But will these companies continue to deliver such performances in the future? Although, Tata has a leading position in the industry that other companies are investing heavily in and will soon catch up.
As competition in the industry increases, Tata’s share of the pie may decline.
Did you know that despite being a market leader, Tata Motors isn’t the country’s first major electric vehicle manufacturer?
Mahindra is the pioneer of EVs in the Indian space. It launched its first EV, Mahindra Reva, in early 2001. Mahindra and Mahindra plan to invest more than $1 billion in the EV space.
M&M has raised $250 million from British International Investment at a $9.1 billion valuation. The investment will be poured into the newly established 100% owned subsidiary of M&M.
In addition to M&M, companies such as Hyundai, KIA and MG also pose stiff competition to Tata.
In spite of, The Tata group has a beginning on the field. It will have to constantly evolve to stay ahead of the competition.
Happy investing!
Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.
This article is provided by Equitymaster.com
(This story has not been edited by NDTV staff and was automatically generated from the syndication feed.)
