Electric Vehicles will not be popular in India unless there is an ecosystem similar to petrol vehicles. Launching more and more electric vehicles will not provide a solution unless a proper ecosystem is created for Electric vehicles in India.The Tata group has contributed to the rapid growth of the Indian EV industry while Automobile companies are still in their comfort zone of making petrol/diesel vehicles.. Tata Group decided to create an EV friendly eco-system in India to motivate Indians to opt for Electric vehicles.
Table of Contents
Importance of EV eco-system in India:
The Chinese companies sold their electric scooters (scooty) in the Indian market in the year 2012-13. Those companies successfully sold a significant number of their vehicles in India as the product was new and no Indian ever experienced any Electric vehicle. However, demand for those vehicles slowed down in the long run. The lack of proper infrastructure was the main reason for their failure. Efficient battery technology or good functioning of Electric vehicles is not sufficient to provide financial benefits to electric Vehicle companies.
India’s electric vehicle industry got incentives from the Government. This push is aimed at transitioning away from internal combustion engine cars in order to reduce pollution levels and dependence on costly fuel imports.
To encourage the manufacturing of EVs and their components, Indian Government recently launched a $3.5bn incentive scheme. The government introduced a Production Linked Incentive (PLI) scheme with Rs 18,000 crore worth of subsidies to incentivize lithium-ion battery production.
The company launched the Tata EV ecosystem in FY20 called Tata UniEVerse. This will provide a unique collaboration platform (‘One Tata’) for all the Tata companies. Tata is probably the only vertically integrated Indian player in the space.
The company also stated that they will invest more than $2bn in its EV business over the next five years This will be used to position themselves as India’s market leader in the EV sector.
Tata Group companies building EV eco-system
Tata Group joined hands with other companies of Tata groups. They decided to build a whole eco-system for their electric vehicles. Tata motors join hands with Tata chemicals, Chroma, Tata powers to build a complete ecosystem and motivate customers to attract EVs.
So here is the list of companies of Tata groups participating in this EV revolution:
- Tata Motors: The Tata motors are creating quality electric vehicles, till now they have made 2 EVs Tigor EV and Nixon EV which broke all the records of EV selling in the industry and are also launching 2 more electric cars very soon. Tata Motors is providing technologically advanced, and economically best electric vehicles.
- Tata chemicals: Tata chemicals is responsible for developing the best EV batteries. The company is also working on recycling the used EV batteries.
- Tata power: The most important part of an EV-friendly eco-system is the charging stations. Making charging stations available like petrol pumps is the most challenging part in the EV industry. Tata powers are way ahead of time in charging stations infrastructure using various tactics and business strategies.
- Tata Elxi: The battery management algorithms and managing internal system of an electric vehicle is a very important aspect which can even affect its range and performance. Hence, to manage that part in EVs Tata bought an IT company and renamed it as Tata Elxi.
- Tata motor finance: Tata motor finance will be responsible.
For the finance of their electric vehicles
IN THE END
You have seen the challenges with the Indian EV ecosystem and How Tata Group is Building EV ecosystem in India.
In the video, I have also discussed Top 3 reasons why TATA EV is successful in the market. Also find out in the video why TATA is successful when electric cars companies like Mahindra existed even before TATA started manufacturing electric vehicles.
Tata group is working rigorously to grow on every vertical in the EV sector.The Tatas have come up with this strategy to align all its business verticals to create the Tata EV ecosystem. The conglomerate has many plans to implement in the upcoming years to become the market leader in the EV sector.