Tata Considers Establishing EV Cell Production Facilities in India and Europe

In an interview with Reuters, the chief financial officer of Tata's vehicle sector stated that the company is considering developing battery cell production facilities in India and Europe.

Tata Motors (NYSE:TTM) controls the electric vehicle (EV) industry in India, having sold a total of 50,000 EVs to date and announcing plans to develop 10 EV models by March 2026. The company anticipates that electric vehicles will account for 25% of its total sales by 2025, up from roughly 8% presently.

Tata Motors' P.B. Balaji stated on the sidelines of India's Auto Expo auto show in Greater Noida, Uttar Pradesh, that localizing cell manufacturing for EV batteries is essential for increasing the use of local components in electric vehicles and will assist the automaker in establishing a local supply chain.

Tata is investigating two production sites, one of which is in Europe, to suit the battery cell needs of its premium vehicle unit Jaguar Land Rover, which has a manufacturing facility there.

Balaji stated that the investment in cell manufacture will be made by Tata Sons, but did not disclose the amount or schedule.

He remarked, "We should reveal it as quickly as possible."

India's automobile market, which is anticipated to become the third-largest in the world, is miniscule relative to its population, with electric models accounting for only 1% of nearly 3.8 million total car sales in 2017; nevertheless, the government intends to grow this to 30% by 2030.

Tata expects its EV business to generate positive cash flow by 2025, and the corporation is also concentrating on enhancing the sector's profitability.

Tata's new models will include a longer driving range and higher price points as Tata Motors looks to secure its position as market leader as Mahindra & Mahindra, Warren Buffett-backed BYD, and SAIC Motor's MG Motors prepare to launch electric vehicles.