Mumbai: On the 17th launch anniversary of the mini-truck Tata Ace, drove in the segment creator’s electric version, and Tata Motors’ first electric commercial vehicle, the Ace EV. With that the Ace became the only CV to offer all fuel options – diesel, CNG, petrol, and finally electric.
In a few years, Tata Motors plans to do just the opposite. “We will have some vehicles which will get launched first as electric. But we’ll have the flexibility of including in it an IC engine, which we think will continue to play for some more time a role in commercial vehicles while we push the agenda for electrification,” Girish Wagh, ED, Tata Motors, told ETAuto.
Expecting a transition journey different from the passenger vehicle (PV) industry, Tata Motors may be working on a wider range of CV product development projects. “We are looking at all options. From the R&D perspective, I can say the horizon is 10 years, not 2 years,” Rajendra Petkar, President and CTO, Tata Motors, said.
The unfolding of the Tata Ace EV came within a week of the OEM unveiling an EV concept, Avinya, based on an electric-only platform. Though at some point the OEM may take a similar approach, for now the product development strategy is to be modular in terms of powertrains too. “In commercial vehicles, the transition to electric is going to be through natural gas as a fuel, and also as alternative fuel. And then there will be a period when the vehicle will possibly have a diesel powertrain, a natural gas powertrain, and also an electric powertrain,” Wagh said.
Tata Motors’ annual capex for its CV business stands at around INR1,500 crore. With the company’s objective to lead the overall EV game, the budget allocation for electric CVs is on the rise, and could grow further significantly. “In the current year, we are preparing for migrating the entire portfolio to BSVI phase-II and that too not just on diesel. That’s business continuity. Despite that, our percentage spend on electric vehicles has actually been going up and will continue to go up because electrification is the way forward,” Wagh said. However, he refused to share investment figures as the company is in a ‘silent period’ before announcing its financial results. For the electric PV business, the OEM plans to spend INR 15,000 crore over the next 5 years.
Subsidiary strategy for CVs too?
As the focus on electric CV grows, will the company adopt the same strategy of creating a separate subsidiary like its PV business? Wagh said, while the company has the “flexibility” to take that approach for CVs too if needed, it may not be required. “We are all committed to that with strong focus and leadership attention on electric CVs. However, the right model for that may not be to create a subsidiary or a separate company. That’s our model for passenger cars. But in commercial vehicles, we have already created sufficient amount of focus on electric,” he said.
Open to collaboration
Along with the electrification mega trend grows the trend of collaboration, globally. Tata Motors said it’s open to collaboration and “cross the bridge when it comes”, but for now it will advance on its own through striking partnerships with engineering companies, like Electra EV which supplies the ACE EV powertrain, and customers. The Ace EV was developed over two years, with inputs also from customers like Amazon, Big Basket, Flipkart, and a few others. From among the 8 customer companies, Tata Motors has secured a cumulative order for 39,000 units.
Some of these e-commerce companies which have an international presence could also pave the way for the Ace EV to drive overseas.
” They have been in talks with us about deploying the Ace EV, once proven here, in other countries,” Wagh said. This could mean entering some new markets too. Tata Motors said it’s “seeing good interest” for its electric buses from the SAARC countries and Africa. Currently, around 10% of Tata Motors’ CV sales come from export markets.
As new strategies are being plotted by Tata Motors to build its electric truck business too, new competitors in this space are also expected to emerge soon.
The new Ace EV, co-developed in collaboration with its users and supported by a diligently curated ecosystem, offers a holistic solution for e-cargo mobility. In addition to addressing the core need of timely cost-effective and efficient last-mile deliveries, the Ace EV also serves the future commitment and aspirations of its conscientious customers to achieve net zero carbon footprint.
The market leader in the Indian passenger electric vehicle market, Tata Motors, has unveiled its pure EV platform. Though India is the core market, the company is eyeing countries globally for the Avinya. From being battery-chemistry and form agnostic to being protected for fully autonomous levels, it is betting big on the all-new innovative platform which it has positioned as the Gen-3 of its EV offerings.
