Trucking News

Electric Trucks And Buses Are Anticipated To Deliver Approximately $500-700 Million For Tata Motors

Dibakar Yadav || New Delhi || 5th May 2022

Buoyed by its progress in the electric passenger vehicle arena, Tata Motors is aiming to electrify a portion of its commercial vehicle lineup.

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The company’s switch to commercial EVs will be more significant than its introduction into the electric personal vehicle category, since commercial EVs could yield $500-700 million, i.e., around Rs 3,800–5,350 crore in sales over the next few years.

Tata Motors is very much the lowest of all the bidders in a government tender for 5,500 electric buses, a contract worth more than Rs 3,000 crore in business potential.

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The company also plans to execute a memorandum of understanding with a half-dozen last-mile ecommerce as well as mobility services, comprising Amazon, Flipkart, BigBasket, Delivery, plus, to deliver 15,000-20,000 electric variants of its Ace micro truck, valued at $150-200 million.

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The business has been aggregating orders from last-mile mobility providers slowly but surely. One of the three people familiar with the situation remarked that the number of 15,000–20,000 seems to be conservative; the purpose or appetite is more than double that number.

He claimed the company is capable of delivering more, but that supply chain difficulties, like semiconductor shortages, are a hindrance.

Although the passenger vehicle sector is all the rage and receives a lot of attention, the commercial vehicle market has a lot more clout and might bring in a lot of cash for Tata Motors in the future.

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A second source stated that it’s a low-hanging fruit that needs to be plucked tactically and strategically. Days ago, Tata Group chairman N. Chandrasekaran said that Tata Motors’ EV pivot would be all in, allowing the business to lead the space.

As per one source, the company’s electric CV business would probably pursue a strategy similar to that of its passenger car business, which would be to demonstrate capabilities and business viability before investing in ramping up.

Switch Mobility and other new-age EV firms like Causis, as well as Triton Mobility, will compete for its electric CV business.

An investment of much more than $5–6 billion is expected from these firms to build businesses, networks, and sources of raw materials.

Dibakar Yadav

Author and Founder of Trucking News India