According to its group CFO, Tata Motors, the largest electric vehicle manufacturer in India, is placing a wager that locally produced EV batteries will enable it to keep its competitive advantage in a market where new models are escalating competition.
The market share of Tata’s (TAMO.NS) new tab EV decreased from 73% in 2024 to 62% in 2024 as competitor JSW MG Motor increased its market share with its new vehicles. Market leader Maruti Suzuki, Hyundai Motor, and Mahindra & Mahindra will all introduce EVs in India this year. Tesla (TSLA.O), a global leader in electric vehicles, has long had its sights set on India.
P.B. Balaji, group CFO at Tata Motors, told Reuters that the Tata Group will be able to better integrate its supply chain thanks to its initial $1.5 billion investment to construct a battery gigafactory in India and supply Tata Motors.
With EV models ranging from about $10,000 to $27,000, Tata, the owner of Britain’s renowned Jaguar Land Rover, relies on other group firms that supply parts and install chargers to keep costs and investment low.
The most costly component of an EV will be more under Tata Motors’ control when Agratas, the $165 billion Tata Group’s battery division, starts producing lithium-ion battery cells in 2026.
