Electric car sales in India have witnessed a strong double-digit growth rate in the last few years; in fact the market witnessed a 91% jump in sales in 2023-24 to 90,996 units from 47,551 units in 2022-23. With over 70% share, Tata Motors dominates the electric car market in India. Rakesh Rao spoke to Anand Kulkarni, Chief Products Officer, Head of HV Programs and Customer Service, Tata Passenger Electric Mobility Ltd, to understand the growth propellers of EVs, challenges and opportunities, and future plans of TPEML.

The evolution of the EV market in India has been quite significant. Initially, one of the main challenges was optimising energy storage in batteries, which are heavier and bulkier compared to traditional fuel systems. This required innovative solutions in terms of battery placement and vehicle design to maximise energy efficiency and range. Over the years, battery prices have decreased and energy densities have improved, allowing for longer ranges and making EVs more viable as primary vehicles for families. We have seen advancements in power electronics and motor efficiency, further enhancing vehicle performance. At Tata Motors, our journey began with the launch of the Nexon EV in 2020, which initially offered a range of about 200 kilometres. Today, our Nexon EV Max model offers over 300 kilometres of real-life range due to these technological improvements.

Electric vehicles offer several advantages over ICE vehicles, including lower emissions, reduced noise pollution, and lower operating costs due to fewer moving parts. They also provide opportunities for innovative vehicle designs, such as expanding the footprint by moving the wheels to the extremities and optimising space for battery placement. However, there are challenges to overcome. These include optimising energy density, managing the additional weight and space occupied by batteries, and developing efficient cooling and powertrain systems. Another significant opportunity with EVs is the potential for enhanced connectivity and data acquisition, which can lead to smarter and more efficient vehicle operation.

The Indian EV industry is making strides towards indigenisation, due to consistent government support through schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), Phased Manufacturing Programme (PMP), and the Productivity Linked Incentive (PLI) scheme. These initiatives encourage local manufacturing and supply chain development. At Tata Motors, we have achieved significant localisation with vehicles like the Tiago EV, which has over 50% domestic value addition. This involves a rigorous process where not only the direct components but also those from tier 2 and tier 3 suppliers are localised. This approach helps control costs, improve supply chain management, and develop local competencies.

The CAFE regulations set stringent standards for fuel economy and emissions for ICE vehicles, encouraging automakers to develop more efficient and cleaner alternatives. Electric vehicles, with their lower carbon footprint, are key to meeting emission targets set by the country and contributing to global decarbonization efforts. As regulations become stricter, the shift towards electric mobility will accelerate, making EVs an integral part of the solution to reduce emissions and achieve national and corporate decarbonization targets.

We collaborate closely with our suppliers, including small and medium enterprises (SMEs). Our approach involves transferring knowledge and specifications derived from our customer requirements to our suppliers. This ensures that they can meet the standards and quality required for our EV components. We work in collaboration with our partners, utilising their expertise while providing insights based on our extensive data and experience in electric mobility. This collaborative effort helps build a robust supply chain capable of supporting the growing EV market in India.

Firstly, the unparalleled driving experience of EVs, characterised by their simplicity, ease of use, and refinement, makes it hard for users to switch back to ICE vehicles. Additionally, advancements in battery technology and power electronics are making EVs more affordable and practical. The expansion of public charging infrastructure is also crucial. While Tata Power and our partners have established a significant number of chargers, further investment in this sector is required to support the increasing number of EVs on the road. As the charging infrastructure improves, it will encourage more people to adopt EVs.

Public charging infrastructure provides the convenience and confidence needed for users to consider EVs as their primary vehicles. While we have made significant progress with around 10,000 chargers established through Tata Power and our partners, further expansion is essential. Private investment in charging infrastructure will help boost growth in the rising EV demand. The more chargers become available; more users will find long-distance travel feasible, thereby encouraging more people to switch.

Addressing the cost and range challenges of EVs is a continuous process. Technological advancements are helping reduce costs and improve range. For instance, battery prices are falling, and energy densities are increasing, allowing us to offer vehicles with higher ranges at competitive prices. We are also focusing on optimising our power electronics and motor efficiencies to enhance overall vehicle performance. By providing multiple battery options and improving the public charging infrastructure, we aim to make EVs more accessible and practical for a broader range of customers.

One of the key opportunities is the ability to design vehicles specifically for the Indian market, taking into account local driving conditions and customer preferences. This allows us to optimise our products for better performance and cost-efficiency. However, challenges include developing a robust supply chain, ensuring the availability of charging infrastructure, and managing the high initial costs of EVs. The Indian market also requires significant investment in educating consumers about the benefits of EVs and addressing concerns related to range and charging availability.

Our EVs are equipped with advanced telematics systems that collect and analyse vast amounts of data. This data helps us monitor vehicle performance, predict maintenance needs, and improve overall efficiency. Connectivity also enables us to offer features such as remote diagnostics, over-the-air updates, and real-time monitoring, providing our customers with a seamless and convenient ownership experience. By leveraging data and connectivity, we can continuously improve our products and services, ensuring that our EVs meet the evolving needs of our customers.

Ensuring the quality and reliability of our electric vehicles is a top priority. We have stringent quality control processes in place, from design and development to manufacturing and after-sales service. Our vehicles undergo rigorous testing to ensure they meet the highest standards of safety, performance, and durability. We also collaborate closely with our suppliers to ensure that all components meet our quality requirements. Continuous monitoring and feedback from our customers help us identify areas for improvement and implement necessary enhancements. Our commitment to quality and reliability ensures that our EVs provide a superior ownership experience.

Our electric vehicles themselves contribute to lower emissions and reduced carbon footprint. We are also investing in sustainable manufacturing practices, such as using renewable energy sources and minimising waste. We try to recycle and reuse battery materials as much as possible to help create a circular economy. Our focus on sustainability extends to our supply chain, where we encourage our partners to adopt eco-friendly practices. By integrating sustainability into our operations, we aim to create a positive impact on the environment and society.

Tata Motors has an ambitious plan to introduce 10 EVs by FY 2025-26. Currently, we offer four models - Nexon EV, Tiago EV, Punch EV, and Tigor EV. Our upcoming offerings include new body styles and models such as the Curvv and Sierra SUVs, which we showcased at the Auto Expo. Additionally, we are working on the Avinya, a world-ready product developed in collaboration with Jaguar Land Rover. These new models will cater to a wide range of customer preferences and contribute to our goal of leading the EV market in India.

By addressing the key challenges and leveraging our strengths, we will establish Tata Motors as a leading brand in the global EV landscape.