Tata Motors to boost EV production as demand increases

14 Apr 2022 CW Team

Tata Motors is aiming to boost the production of electric vehicles (EVs) as demand continues to outpace manufacturing activity by a large margin.

The automotive manufacturer, which led the passenger EV space in the domestic market in the previous fiscal year (FY), has been getting nearly 5,500-6,000 bookings in the last two months for its EV range.

In the domestic market, the company offers three electric vehicles: Nexon EV, Tigor EV, and XPRES-T. It also just launched a coupe-style SUV that will be available in the coming two years.

Shailesh Chandra, Tata Motors Managing Director of Passenger Vehicle and EVs, told the media that the high demand for the company's electric vehicles has resulted in a backlog of orders.

He said that the company in the last month was only able to supply around 3,300-3,400 units.

Chandra said that the firm is trying to increase capacity by boosting semiconductor sources.

To increase the availability of critical chips, the company has taken actions such as design adjustments and procurement from several manufacturers.

He said that seven months ago, they were only manufacturing 600 units, but such steps enabled them to grow production to 1,500-1,700 units, then 3,000-3500 units.

According to the Federation of Automobile Dealers Associations (FADA), Tata Motors led the electric passenger car sector in 2021-22, with 15,198 units sold and an 85.37% market share.

Chandra said that the demand may be substantially greater than the 30% level as once the inflexion point is struck then the growth is completely uncontrolled.

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Also read: Tata Motors plans to invest Rs 15,000 cr in EV market in 5 years

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