Tata Motors launched its first mid-sized electric SUV, the Curvv.ev, with a starting price of Rs 17.49 lakh on Wednesday. Despite a recent decline in EV sales, the company remains optimistic about the long-term potential of the electric vehicle market.
Current Sales and Future Goals
Tata Motors is aiming to sell one lakh electric vehicles in the current fiscal year. Although electric vehicles currently account for 12% of the company’s overall sales, there has been a recent dip in numbers. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility, described this decline as a “short-term” issue.
Short-Term Challenges
Chandra pointed out that the overall demand stress in the passenger vehicle (PV) market is also affecting EV sales. He emphasized that this trend is temporary and mainly due to a high base effect from the first quarter. The fleet segment has also seen a reduction in EV sales.
Long-Term Optimism
Despite these challenges, Chandra is confident about the mid- to long-term prospects of EVs. He noted that the barriers that existed two years ago, such as concerns about charging infrastructure, price, and range anxiety, have significantly reduced. Today, there are around 15,000 to 16,000 EV chargers on highways, compared to only a few hundred earlier.
Industry Trends and Regulations
Chandra mentioned that the regulatory environment is also supportive of the EV industry. New regulations are being framed to promote electric mobility, making the long-term outlook for EVs positive. He stressed the importance of staying focused on the long-term trend, despite the 12% year-on-year decline in EV sales in July 2024.
Tata Future Plans
Tata Motors is committed to achieving its goal of one lakh EV sales. The company plans to introduce new models and is looking forward to the festive season to boost sales. Chandra assured that inquiries and bookings for EVs are still strong, indicating sustained interest from consumers.
Tata Motors’ launch of the Curvv.ev at Rs 17.49 lakh marks a significant step in its EV journey. The company remains confident in the long-term potential of electric vehicles and is taking strategic steps to overcome short-term challenges. With supportive regulations and improved charging infrastructure, Tata Motors is well-positioned to achieve its ambitious EV sales targets.
