3.5.22

TaMo Eyes $500-700m Biz from Electric CVs

Encouraged by its success in the electric passenger vehicle space, Tata Motors is preparing for electrification of a part of its commercial vehicle portfolio. The transition toward commercial EVs will be bigger than its entry into the electric personal vehicle segment, as commercial EVs will potentially generate $500-700 million (₹3,800-5,350 crore) in business in a couple of years for the company.

Tata Motors is already the lowest bidder in a tender floated by the government for 5,500 electric buses, an order with a business potential of more than ₹3,000 crore. The company is also set to sign a memorandum of understanding with half a dozen last-mile ecommerce and mobility providers, like Amazon, Flipkart, BigBasket, Delivery and Moving.com, to deliver 15,000-20,000 units of the electric version of its Ace mini truck, estimated to be worth $150-200 million.

Tata Motors will be formally unveiling the Ace Electric Cargo this week. “The company has been slowly and steadily aggregating demand across last-mile mobility providers. The number of 15,000-20,000 appears rather conservative; intent or demand is more than double that number,” said one of three people in the know. The company is ready to deliver more, he said, while pointing out supply chain issues, such as the shortage of semiconductors, as a drag.

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