Tata Motors shares power ahead on EV plans1 min read . Updated: 13 Oct 2021, 12:21 PM IST
Tata Motors plans to invest $2 billion in its EV business and will drive out as many as 10 EVs in India over the next five years.
Tata Motors recently announced an increase in its investments in electric vehicles, a development that has sent its share prices northwards. Tata Motors' shares on Wednesday jumped by close to 20% to its highest level since February of 20179.
On Tuesday, Tata Motors had announced that it had raised funds from private equity firm TPG.
The auto giant now plans to invest a whopping $2 billion in its EV business over the next five years. There are plans of driving in as many as 10 electric vehicles in this time period.
Tata Motors has a big say in the limited mass-market EV space at present. The Nexon EV has captured a lion's share of the mass-market segment while the company recently also launched the Tigor EV for individual customers. Nexon EV, priced from ₹14 lakh, has a range of 312 kms. The Tigor EV has a smaller range of about 306 kms and is the most affordable EV in India at a price of ₹12 lakh.
Tata Motors has repeatedly backed its EVs and newer launches could further help the company expand its dominance in the playfield. But much would also depend on how the EV market as a whole expands. “Our focus is on expanding the EV market and not so much on expanding the market share," Vivek Srivatsa, Head of Marketing at the Passenger Vehicle Business at Tata Motors had previously told HT Auto during an interaction. “Once you reach a 70% market share, a difference between 65 to 70 to 75 is not that great as long as your volumes are not growing. By democratizing, by mainstreaming EVs, we want the overall EV basket to grow and within that, we want to have a lion's share."
The hunt may well be on and Tata Motors would hope for the pack of existing and new EVs further help it go for the kill.
(With inputs from Reuters)