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Good News for Tata Power Investors EV Charging Business $30 Billion Opportunity

Good News for Tata Power Investors EV Charging Business $30 Billion Opportunity

Published on 23 August 2021 Views 124 Comments 2

There is some good piece of information for the long-term investors of Tata Power. What is it and How it can be beneficial for the company and the investors in the long run? Let’s know it in brief in this short article.

Introduction:

As per some of the News and Research Reports, the Electric Vehicle Industry may witnesses significant growth of around 40% in the coming 6-7 years. Let us discuss what else do these reports state and how does Tata Power fits in this scenario.

Electric Vehicle Industry:

The electric vehicle industry is experiencing a technological transformation phase with two significant aims: firstly by improving vehicle range and secondly, by enhancing charging infrastructure.  

The EV manufacturing companies are spending tonnes of capital and energy on charging stations’ infrastructure development to promote long-range battery vehicles.

By 2027, the EV charging stations business can reach an estimated $29.7 billion (more than Rs. 2 Lakh Crores), at a CAGR of 39.8% between 2020-2027, as per Report. 

Tata Power:

As of now, Tata Power is having 85+ charging points. Out of these 85+, charging points over 40+ in Mumbai and the rest are in the various 9 States of the country.

These numbers of Charging Points may also rise in the future with the growth in the EV Industry.

With the presence of a high growth rate in the industry itself, the business could also take benefit of the Operating Leverage.

Moreover, the Subsidiary of Tata Sons, Tata Motors has partnered with Tata Power to set up 300+ fast-charging stations over diverse cities across Delhi, Mumbai, Bangalore, Pune, and Hyderabad.

Tata Power Electric Vehicle Charging Solutions meet diverse charging standards and specifications which means that these charging solutions will also be able to charge other company vehicles and not only Tata Motors Vehicles. The company can further tie up with other Original Equipment Manufacturer (OEMs) and hence a good business can build from here

Conclusion:

There is a good developing ecosystem between the Tata Group Companies like Tata Motors, Tata Power, Tata Chemical, and Tata Elxsi for the future EV Period, wherein every individual company will play a crucial role in the EV Ecosystem of Tata.

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