Jamshedpur. For the past few years, Tata Motors has made a habit of winning. The company, which had been in trouble due to losses for the past decade, had turned its back on customers. Passenger car sales were in bad shape. But understanding the market situation, the script of change that Tata Motors has written has taken the Indian automobile market by storm.
10% share in passenger vehicle market
Today, Tata Motors captures about 10 per cent of the passenger vehicle market, which is almost double the share of five years ago. The turnaround also comes at a time when the automobile industry had witnessed a tough phase, which was hit by the pandemic. But as soon as the pace of corona infection slowed down, the sale of cars came out.
India’s most valuable automobile company
In the process, the company’s market capitalization has nearly quadrupled in the last one year, making it one of the most valuable automakers in India at present. Yet, despite all the recent successes, Tata Motors has no time to flaunt its reputation. The company had already learned that a revolution was going to take place in the Indian automobile sector in the coming years.
Nexus is rocking the market
Today, Tata Motors is India’s largest electric vehicle maker, capturing around 75 per cent of the market led by its hugely popular Nexon EV, which currently receives around 3,500 orders a month.
Perhaps that’s why it came as no surprise when, in September, a subsidiary being set up by the company became India’s most valuable EV company after raising a billion dollars from private equity major TPG Rise Climate. The deal puts Tata Motors’ operating subsidiary valued at over $9 billion and more capital is expected around March next year.
Plan to invest $2 billion in next 5 years
Tata Motors will also invest $2 billion in the subsidiary over the next five years. Not only this, the group is also building an ecosystem called Tata Universe which will take advantage of group synergies. Here several Tata companies will work together to provide EV solutions to the consumers.
Vehicles running on gasoline and diesel will be closed by 2040
The big gamble with electric vehicles comes at a time when at least six major automakers, including Ford, Mercedes-Benz, General Motors, and Volvo, and 31 countries have pledged to drive gasoline and diesel-powered vehicles by 2040 at the recently concluded COP26. decided to take it out of the market.