Tata considers setting up EV cell manufacturing plants in India and Europe

Tata Motors, one of the automobile companies at the forefront of the Electric Vehicle (EV) revolution, has revealed its intentions to set up plants in India and Europe to produce batteries for their electric vehicles. This announcement was made during the Auto Expo car show held in Greater Noida. The company has recognized the need to increase revenue from EV sales as the world gradually undergoes a paradigm shift from crude oil components to renewable energy. 

In order to realize better sales, the company has outlined its plans to produce 10 new electric models by March 2026 and levitate the proportion of sales from EVs to 8% by 2025. The establishment of indigenous battery-manufacturing plants can be understood as a move to make the supply chain more efficient and localized, which in turn reduces costs of transport and operations and empowers local youths. It also reduces dependence on China.

The production base in Europe is a requirement for Tata due to the acquisition of Jaguar Land Rover, with manufacturing facilities based over there. The Evoque models also run on similar type of lithium-ion batteries, but producing the batteries at a closer geographical proximity greatly mitigates costs of transport and any complications that arise due to India being out of the European Economic Zone.

Tata’s long term ambition will be to cement its dominant position in the EV automobile market as competitors like Mahindra & Mahindra, Warren Buffett-backed BYD Auto and SAIC-owned MG Motors have their own range of EVs queued up for launch.

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