Tata Motors to Open Up EV Cell Manufacturing Plants in India and Europe

Written by: Arjita Gupta

Edited by: Krutarth

Last Updated: January 13, 2023

With 50,000 electric cars sold to date in India, Tata Motors continues to be at the top of the EV market in the country. The firm has also chalked plans to bring ahead 10 new models of electric vehicles by March 2026. According to the company’s Chief Financial Officer, they have goals set to build plants in Europe and India to produce battery cells for EVs. By 2025, Tata Motors also expects the total sales for EV models by 8% already in a quarter.

In an Auto Expo car show that took place in Greater Noida, PB Balaji of Tata Motors said that to increase the local components in their electric cars, it is important to localize the manufacturing of cells for the electric vehicle batteries. This will assist the automobile giant to develop and tap into the local supply chain as well. By 2025, the company estimates the cash flow for EV business to improve and they are thus, focused on boosting profitability for the sector as well.

The company is considering establishing production bases for battery cell needs for the Jaguar Land Rover, a luxury car unit, in Europe. The region already had a manufacturing facility. Thus, if the battery cell plant adds on, it will benefit the share of total sales as well as manage costs. PB Balaji said that Tata Sons, the parent company will be the one to invest in the cell manufacturing plant.

However, no specific timeline or quantum was announced. But the dates may be out sooner than later. Tata Motors will launch electric models with a wider driving range. It will also have a higher price point competing for side by side with SAIC Motor's MG Motors, Warren Buffet-backed BYD, and Mahindra & Mahindra. All these already have EV launches lined up soon.

The government of India by the year 2030 has plans to increase the total sales of electric cars to 30%, despite its population where EVs only contribute otherwise to 1% of the total car sales. Last year, the sales figure for electric cars was around 3.8 million. The country is set to become one of the largest markets for electric cars, the third-largest worldwide in the forecast period.