Tata Motors Aims for 50% EV Sales by 2030

Tata Motors expects electric vehicles (EVs) to make up 50% of its car sales by 2030, according to Vivek Srivatsa, the Chief Commercial Officer of Tata Passenger Electric Mobility. Currently, EVs account for 13-15% of sales.

Rising EV Sales in India

Research by Counterpoint shows that EV sales in India are set to rise by 66% in 2024 after doubling in 2023. This growth is driven by better infrastructure and state subsidies. By 2030, EVs are expected to represent one-third of India’s passenger vehicle market.

Tata Motors' Market Dominance

Tata Motors currently holds a 70% share in India’s EV market with models like Tiago, Nexon, Tigor, and Punch.

Comparing EV Adoption

Srivatsa points out that India’s EV penetration is around 2.2-2.3%, while it is 35% in China and 20% in the United States. He expects India to reach 5-6% in the next few years, with further growth driven by word of mouth as more EVs hit the roads.

EVs as Additional Cars

Currently, many people buy EVs as second or third cars in their households. However, with models like Tiago and Punch, 20% of Tata’s EV buyers are first-time car buyers.

Benefits of EVs

In India, the main reasons people buy EVs are lower running costs (one-tenth that of petrol cars) and the comfort of driving, such as silent operation and quick acceleration.

Marketing Campaigns

Srivatsa mentions that Tata Motors is targeting first-time EV users who rely on word of mouth. To address this, they launched the #EasytoEV campaign with short clips debunking myths about EVs. The campaign, created by FCB India Group, aims to educate consumers rather than focus on specific products.

Reaching a Wide Audience

The campaign targets tier-two and lower towns, which account for over 45% of Tata’s sales volume. It is being promoted through various channels, including OOH, print, radio, TV, and digital media, with digital contributing 35-40% of the ad budget.

Focus on Cricket Events

Tata Motors has been associated with the IPL since 2018 and featured EVs in the tournament from 2023. For the ICC Men’s T20 World Cup, they are focusing on matches involving India.

Charging Challenges

One of the biggest challenges for EV adoption is charging, as only 15% of car users have dedicated parking spaces. Tata is working with various providers to set up public and society-level charging stations.

Government Support

The government has reduced EV import taxes for companies that invest at least $500 million and start domestic manufacturing within three years. Srivatsa believes this will help the EV market grow by bringing advanced global EVs to India.

Tata.ev Rebranding

In August 2023, Tata Motors rebranded its EV division as Tata.ev and opened its first dedicated showroom in Gurgaon in December 2023. Srivatsa notes that EV buyers expect a tech gadget buying experience, and Tata is expanding exclusive EV outlets across the country.