Tata Motors Sets Goal To Double EV Fleet Sales In Current Year

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posted on 9 months ago — updated on 1 second ago

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Tata Motors expands its EV lineup for individual and fleet buyers, with 40,000 orders and plans to double fleet sales to 15,000 units this year.

Tata Motors is expanding its electric vehicle offerings for individual buyers while maintaining a strong presence in the fleet market.

With an impressive order book exceeding 40,000 cars, Tata Motors anticipates that its fleet sales will more than double, reaching 15,000 units within the current calendar year, as per a report by Autocar India. This surge in fleet sales may constitute 12-15 per cent of the company’s target of 1,00,000 total units for the current fiscal year.

Tata Motors’ fleet-exclusive electric sedan, the Xpres-T (derived from the Tigor EV), is available with two range options: 315km and 277km, certified by ARAI under test conditions. Similar to its production plans for the new Nexon EV, the automaker intends to increase Xpres-T EV output from 500-600 units per month to 1,000-1,250 units per month by year-end.

According to the report, Tata Motors has confirmed orders from major fleet operators, including 10,000 units for BluSmart Mobility, 25,000 units for Uber Technologies, and 5,000 units for Lithium Urban Technologies. Additionally, orders from medium to small electric mobility fleet operators may contribute to several thousand more units.

At the launch of the facelifted Nexon EV in Delhi, Shailesh Chandra, managing director, Tata Passenger Electric Mobility said, “We sold close to 6,000 to 7,000 EVs last year, and we expect the numbers to improve to the 12,000-15,000 range in the current year.” This growth is attributed to the aggressive fleet expansion efforts by last-mile shared mobility startups.

In the first half of 2023, India’s EV market witnessed increased funding activity, with startups raising over USD 700 million from private equity and venture capital funds. Notably, BluSmart, operating over 5,000 electric cabs, raised USD 110 million and utilizes Tata Motors’ Tiago and Tigor EVs among other electric vehicles.

Tata Motors’ EV market share has surged from 9 per cent of passenger vehicle unit sales in FY2023 to over 13 per cent within the initial five months of FY2024, according to Vahan data. The company has ambitious plans to raise its EV sales share to 25 per cent of total volumes by 2027 and 50 per cent by the end of the decade.

Shailesh Chandra further emphasised, “As battery prices fall and competition launches more vehicles, the share of electric powertrains in overall passenger vehicle sales will only increase.”

While Tata Motors has recently introduced the Nexon EV facelift, preparations are already underway for the market debut of the Punch EV, set to go on sale next month.