try to curb pollution and reduce its fuel import bill, India is
pushing automakers to produce electric vehicles, but has faced
resistance from some that say the charging infrastructure needs
to be set up first and battery costs are too high to allow the
manufacture of affordable EVs.
Companies from the steel-to-autos Tata conglomerate plan to
address some of these issues.
Tata Motors <TAMO.NS>, Tata Chemicals <TTCH.NS>, Tata Power <TTPW.NS>
and Tata Croma, a chain of stores selling consumer electronics,
are pooling resources and expertise to build an electric vehicle
ecosystem, the executives told reporters in Mumbai.
The plans were announced ahead of the launch of Tata Motors'
electric sport-utility vehicle (SUV) Nexon EV, which was
attended by N Chandrasekaran, chairman of Tata Sons, the
automaker's parent group, and family patriarch Ratan Tata.
"This is the launch of an ecosystem, which is the real need, not
just another vehicle launch," Guenter Butschek, managing
director at Tata Motors, which also owns the British luxury car
brand Jaguar Land Rover, said.
Tata Power, which has set up 100 charging stations, will add
another 650 in more than 20 major Indian cities over the next
year, the company's CEO Praveer Sinha said.
All stations will support fast charging and will be linked to a
mobile application, which has been developed with Tata
Consultancy Services (TCS) <TCS.NS>, for payments and to check
the availability of chargers, Sinha said.
Tata will use its chain of Croma stores to display digitally its
EVs, and some stores could offer test drives and charging
stations and may even sell cars.
The Nexon EV, priced starting at $19,700, is one of four
electric car models that Tata Motors plans to launch over the
next 2 years. The others will also be an electric version of its
existing cars and will include a hatchback, sedan and SUV.
The EV will be sold through Tata dealers and its retail Croma
stores, Butschek said during the launch, adding the company will
offer an 8 year warranty on the battery.
One of the biggest hurdles to building affordable EVs in India
is the cost of the batteries, which are typically imported
making them expensive.
Tata Chemicals has built a battery recycling center and acquired
land to set up a battery manufacturing plant that is expected to
be ready in 3 years, CEO Ramakrishnan Mukundan said.
It plans to invest $113 million in the plant, which will have
initial capacity of 200 megawatts with potential to scale it up
to 2 gigawatts, depending on domestic and global demand, he
(Writing by Aditi Shah; Editing by Sanjeev Miglani and Barbara
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