How Tata Group is driving its EV ambitions

Electric vehicles (EVs) are no longer a concept of the future. They are rapidly revolutionising the automotive industry today. While EVs currently account for less than 10 per cent of total vehicle sales, this number is expected to reach 30 per cent by 2030. With the industry projected to grow at 66 per cent annually until 2029, the growth potential is enormous.

The Tata Group has recognised this vast potential. A trailblazer across multiple industries, the conglomerate has repeatedly emphasised their commitment to pushing aggressively towards electric vehicles.

In this article, let's look at different Tata Group companies and how they are positioned to play crucial roles in the entire EV value chain to seize opportunities in this rapidly evolving sector and create an integrated EV ecosystem:

Tata Motors: EV production

Tata Motors leads India's EV market, holding a substantial 67 per cent market share (as of the first half of FY25) in the electric four-wheeler segment. Their current lineup includes popular models like the Nexon EV, Tigor EV, and Tiago EV. Tata Motors plans to launch 10 new EV models by 2025, catering to both passenger and commercial segments. Additionally, the company aims to improve battery performance, integrate advanced connectivity features, and offer varied charging solutions.

Their luxury arm, Jaguar Land Rover (JLR), is also transitioning towards an all-electric future with a £15 billion ($19 billion) investment plan for the next five years. This involves transforming existing plants to produce electric drive units and batteries for luxury electric cars.

Agratas Energy Storage Solutions: Battery manufacturer

At the heart of Tata's EV strategy is Agratas, which is establishing a lithium-ion battery gigafactory in Sanand, Gujarat. With an initial capacity of 20 GWh, this facility aims to reduce India's dependence on battery imports from China and Korea.

Tata Chemicals: Battery components manufacturer

Supporting Agratas is Tata Chemicals, which focuses on lithium-ion battery materials and recycling. The company has invested in facilities to produce cathode active materials and recover high-purity materials from used batteries. This reduces reliance on imports, supports local battery production and promotes sustainability​. Tata Chemicals is also exploring sodium-ion batteries as a viable alternative to lithium.

Tata Power: EV charging infrastructure

For EVs to succeed, charging infrastructure is crucial. Tata Power is leading this charge with over 5,600 public chargers and 25,000 home chargers already deployed. The company will add 25,000 more charging points in the next five years. Tata Power also supports charging infrastructure for electric buses and commercial vehicles through fast-charging stations.

Tata Elxsi: Technical engineering and software design

Tata Elxsi offers advanced technology solutions such as autonomous vehicle systems, electrification, and connected car technologies. Their contributions include software development, simulations, and digital systems that enhance vehicle safety and user experience.

Tata Consultancy Services (TCS): Digital and connected vehicle solutions

TCS complements Elxsi's work by providing IT services and digital solutions for connected, autonomous, and electric vehicles, including fleet management systems and customer-centric applications for Tata Motors' EV line.

Tata Autocomp Systems: EV components manufacturer

As an associate company (23 per cent owned by Tata Motors), Tata Autocomp develops EV components like battery packs, motors, and power electronics. Through joint ventures with companies like Tata Green Batteries and GS Yuasa International, Tata Autocomp produces advanced battery solutions and other critical EV components​.

Tata Steel: EV materials manufacturer

Contributing to the physical foundation, Tata Steel develops lightweight, high-strength materials that not only reduce the overall weight of EVs but also improve efficiency. The company is also exploring new steel grades optimised for EV applications to enhance sustainability.

Investors' corner

While Tata Group's comprehensive approach to the EV sector shows promise, investors should also consider the challenges.

Tata Motors' EV market share dipped to 58 per cent in October amid increasing competition from players like MG Motors. The sector, too, faces some headwinds, particularly in the form of China's dominance in lithium refining and battery manufacturing, where it maintains cost leadership. Consumer concerns about range anxiety and charging infrastructure also persist.

That said, Tata's integrated approach and continued investments in infrastructure, such as Tata Power's expansion of charging networks, position the group well for long-term growth. For investors, this presents both significant potential and risks, making it crucial to monitor how Tata Group's comprehensive strategy unfolds in this rapidly evolving landscape.

Also read: At 10x earnings multiple, is Tata Motors a steal?