Tata Motors’ EV Business Is Now A Billion-Dollar Enterprise

The electric vehicle unit of Tata Motors Ltd. is now a billion-dollar enterprise, while accounting for three out of four electric cars sold in India. 

Tata Passenger Electric Mobility Pvt. clocked a revenue of Rs 9,300 crore in the fiscal-ended March 31, 2024, according to an annual report released on Friday. In volume terms, wholesales—or the dispatches to dealerships from the factory floor—rose 47.5% year-on-year to 73,844 units in FY24, as against 50,077 units in FY23.

That allowed the company to turn Ebitda-positive in the previous fiscal.

“With 1,50,000 cumulative EV production, a milestone achieved by few car manufacturers globally, we sold three out of four electric cars in India last year,” Shailesh Chandra, managing director of Tata Passenger Electric Mobility, said in a letter to shareholders. 

“To create distinction, we introduced a new customer-facing brand identity… and inaugurated EV-only stores to provide the differentiated experience that EV customers expect.”

But while Tata Motors' EV sales surged in FY24, its market share declined.

According to VAHAN data, collated by the Federation of Automobile Dealers Associations, 64,217 Tata Motors' electric cars were registered in FY24, as against overall sales of 90,996 electric cars. That translates to a market share of 73.1%—1,080 basis points lower than 83.9% in FY23.

Clearly, the competition is catching up.

“In FY25, we expect a substantial number of new EV launches, which will drive growth for the industry,” Tata Motors said in the annual report. “We aim to consolidate our market leadership position in EVs and increase EV penetration, while ensuring a healthy financial performance that will underpin our growth going forward.”

On Friday, Tata Motors shares fell 0.14% to Rs 922.85 apiece on the BSE, as compared with a 0.10% gain in the benchmark Sensex.