By the Year-end of Calendar Year 2021, Tata Motors might launch its Electric Commercial Vehicle in the market. How will this affect the market shares, and is it good news for its Shareholders? To get more information about this plan of Tata Motors, read this article.
Tata Motors may launch its Electric Commercial Vehicles, specifically Light Commercial Vehicles, by December 2021. For that reason, Company has also started targeting its potential customers. To be more specific, these potential customers are the e-commerce giants like Amazon, Flipkart, Reliance, etc. As expected, the Government may bring specific laws that will lay down compulsion on these e-commerce players to shift to EVs from their current fleet status.
These e-commerce companies might receive a time limit of 3-4 years, i.e., by 2025, to get updated to EVs for their mobility purposes.
To take advantage of the government’s upcoming law, Tata Motors come up with its Electric LCV by Dec. 2021.
Tata Motors is already having a leading market share of more than 50% in the Light Commercial Vehicle segment.
Recently, Tata Motors has also launched its T.Series range under the Light Commercial Vehicle heads.
This sleek range of T.Series consists of Trucks named T.6, T.7, and T.9.
At present, Tata Motors EV Vehicles are not the only player in the LCV segment, as Mahindra & Mahindra have also launched an e-Rickshaw under the name of ‘Treo Zor’ in the same business line. Thus, this makes the tata motors electric car price competitive.
This product of Mahindra has already got the first customer - Amazon
Furthermore, Amazon has a target of acquiring 10,000 Electric LCVs in their fleet. On the other hand, Walmart backed Flipkart has also announced that they will have 25,000 Electric Vehicles in their fleet.
Such competition between these e-commerce players will undoubtedly benefit EVs makers, especially the market leader and the first mover. Thus, expanding the scope of electric commercial vehicles in India.
As per the current view, Tata Motors appears to be a dominant player.
The reason for this can be the decreasing price gap between IC engine-based vehicles and EVs. In addition to this, the increasing price of Diesel and Petrols also acting favourably for EVs on a longer horizon.
Tata Motors has already taken the first-mover advantage in the EVs business.
Tata Motors has also launched Nexon EV in 2020 under the Passenger Vehicle segment, their first EV in this.
Until now, 2500 units of the Nexon EV have been sold, despite the ongoing pandemic and slowdown in the economy.
Also, an important point to note down here is that in the EV market, Tata Motors has a market share of around 65% from April 1, 2020, till now.
Tata Motors is already a market leader in the EV market. Their electric passenger vehicle has got an enormous response. The company’s plan to launch Electric Light Commercial Vehicle by the year-end will undoubtedly add value to their business and market share. The developing synergy between Tata Motors, Tata Chemicals, Tata Power, and TCS (for some software development purposes) might also work well for the Tata Group.
Looking at the emerging demand and popularity of EVs, this news might certainly work well for the company and its shareholders.
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