The transition towards commercial EVs will be bigger than its entry into the electric personal vehicle segment, as commercial EVs will potentially generate $500-700 million (Rs 3,800-5,350 crore) in business for the company over a few years.
Tata Motors is already the lowest bidder in a tender floated by the government for 5,500 electric buses with a commercial potential of over Rs 3,000 crore. The company is also set to sign an MoU with half a dozen last-mile ecommerce and mobility providers such as Amazon, Flipkart, BigBasket, Delivery and Moving.com to deliver 15,000-20,000 units of the electric version of its Ace Mini. . The truck, the price of which is estimated at 150-200 million dollars.
Tata Motors will formally unveil the Ace Electric Cargo this week.
“The company is slowly and steadily mobilizing the demand among the last-mile mobility providers. The numbers 15,000-20,000 appear to be relatively conservative; The intention or demand is more than twice that number,” said one of the three people with knowledge of the matter. The company is ready to deliver more, he said, pointing to supply chain issues, such as shortages of semiconductors, as a drag.
Emails sent to Tata Motors did not elicit any response till press time on Monday.
“While the passenger vehicle business is all the more glamorous and garnering more attention, the demand for the commercial vehicle space is very high and could generate huge gains for Tata Motors in the future. It is a low hanging fruit, which should be consumed, strategically and strategically,” said a second person.
Tata Group Chairman N Chandrasekaran told ET last week that Tata Motors’ inclination towards electric vehicles will be ‘all in’, allowing the company to lead the segment.
The entire Tata Group is involved in driving Tata Motors’ EV ambition, working with Tata Autocomp, Tata Power, Tata Chemicals, Tata Technologies, Tata Elxi and Tata Consultancy Services on development and supply of products, software and services.
Over the past year, the company has brought on board Anurag Mehrotra, former managing director of Ford India, who may work on opening up new markets for electric vehicles globally. Former Royal Enfield Global Chief Marketing Officer Shubhranshu Singh, who joined the company last year, will be driving the perception change for the brand in the cleaner mobility space.
One of the people said that the company’s electric CV business will likely be similar to the strategy it adopted for the passenger vehicle business: demonstrating capacity and business potential before investing in scaling.
Its electric CV business will face competition from Switch Mobility and some new-age EV players like Caussis and Triton Mobility. More than $5-6 billion is expected to be invested in building a portfolio, ecosystem and supply base out of these four companies.
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