Tata Motors sees EV bookings surge as fuel costs climb

NEW DELHI: Tata Motors is witnessing a surge in electric vehicle demand as rising fuel prices and inflation concerns push more consumers towards lower running-cost mobility options, particularly in the affordable passenger vehicle segment.

"There is a sharp jump in just two months; it is about 2 to 2.5 times what it used to be for EVs," said Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles, adding that more households now want at least one electric car. He said the increase in EV demand had become significantly sharper in recent weeks as customers rethink ownership costs.

The company currently produces around 10,000 EVs a month and plans to raise capacity to 15,000 units monthly over the next three to four months. Chandra said demand is already running ahead of production capacity, with bookings surging over the last two months.

"Demand is currently outstripping our capacity," he said ahead of the launch of the next-generation Tiago and Tiago EV. Tata Motors launched the refreshed Tiago range at starting prices of just under Rs 4.5 lakh for the petrol version, sub-Rs 5.8 lakh for the CNG variant and around Rs 6.7 lakh for the Tiago EV.

Tata Motors expects EVs to contribute around 16% of its passenger vehicle sales mix in the near term, while CNG vehicles are projected to account for another 25-27%. Together, EVs and CNG models could make up about 42-43% of the company's portfolio.

Diesel vehicles are expected to remain at around 11-13%, with petrol-powered vehicles accounting for the rest. Chandra said EV bookings in the month of May had climbed to nearly 23% of total bookings, with the growth now being driven largely by genuine customer demand rather than temporary supply-side factors.
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