Tax sops may push personal users to opt for electric vehicles: Tata Motors
The automaker plans to launch its first EV for personal buyers in fourth quarter this fiscal.
The company is adopting a twin product strategy, differentiated for personal and fleet buyers. Its first EV for personal buyers will hit the market in the fourth quarter with its new modular EV powertrain Ziptron, the company announced on Thursday.
The higher range Tigor EV for fleets will be launched in the coming weeks. Tata Motors will be launching an electric vehicle based on the X4 platform, which may be the Altroz EV to be showcased at the Auto Expo of 2020.
The Ziptron is a 300-watt powertrain having a range of more than 250 km per charge. The Ziptron powertrain is modular and versatile, and it will be used across the two new modern architectures X4 and Q5 in the coming years. The existing battery in Tigor will be enhanced so that fleet buyers are assured of a longer driving range for their vehicles. Shailesh Chandra, head of E Mobility Division at Tata Motors, told ET that despite low volumes, there is a business case for EVs, and the company does make margins with current models. “The fleet segment is just 10% of the overall market; so, electrification cannot gain momentum in India without focus on 90% of the market,” Chandra said. “So far, personal segment vehicles available could not overcome the barriers. It is possible for us to make electric vehicles more attractive with the new range of products."
Through the Ziptron electric powertrain, developed by a dedicated team of 350 engineers, Tata Motors has tried to address issues surrounding range anxiety, driving performance, and safety.
The company will offer eight years’ warranty on the powertrain the company claims has been tested for close to a million kilometres. Tata Motors said studies have shown that a prospective buyer is willing to pay a 25% premium for an EV, although that shouldn’t be assumed to arrive at the price point.
Tata Motors will not focus on the entry segment, as the price premium can be two times. But certain segments (SUVs or premium hatchbacks) could be as competitive for EVs as they are for traditional, fuel-powered engines.
"For these segments, price is not the primary consideration; they are looking at new technologies, connected car solutions, performance, and some are even environmentally conscious,” Chandra said.