HSBC Investor day Mr. Shailesh Chandra | 7th Apr 2021 - Tata Motors
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HSBC Investor day
Mr. Shailesh Chandra | 7th Apr 2021
© Copyright, Confidential, Tata Motors Limited
Agenda
1 EV Opportunity
2 Tata Motors journey
3 EV Ecosystem
4 Tata Motors Strategy
© Copyright, Confidential, Tata Motors Limited 2
Indian EV industry has witnessed a strong growth over the last few year
• COVID -19 - Fleet demand muted
• Adoption in personal segment improved
• Nexon EV Highest selling EV in India
• Tigor ER with 213km range
launched 5927
• EESL floated a tender of 10,000 EVs • Tigor EV highest selling EV
• Tigor EV with 140km range launched in India 425
• Personal segment sales reduced due to • Nexon EV launched
unavailability of options • Personal segment options - 3
111%
• Sales mainly driven by
older generation
product 2811
• Tata Motors absent
from the EV market 44% 5502
1946
1235 58% 1858
850 45%
1786
226 957
953
624
278 160
FY 17 FY18 FY19 FY20 FY21
Personal Fleet
Number on bar represents EV sale
Number of arrows represent YoY growth
Adoption in personal segment has unlocked the growth potential
© Copyright, Confidential, Tata Motors Limited 3
Government has shown strong intent towards driving EV adoption over the years
Phased Mfg. Plan released
NEMMP 2020 launched to achieve (by 2020) 2019 • xEV components localization targets
• 6-7 million sales of EVs
• ~USD 2 billion savings in fuel 2013
FAME-II Policy
• ~1.3%-1.5% reduction in CO2 emissions 2019 • Budget of INR 10K Cr
• ~60,000-65,000 additional jobs
Import duty reduction for EV components
FAME-I Policy 2019
• Drive faster adoption and mfg. of EVs Jan • From 15-30% to 10-15% (5% for battery
• Budget of INR 895 Cr with focus on packs)
o INR 500 Cr Demand Incentives 2015
April Modern Building Bye-Laws
o INR 190 Cr for R&D 2018 • 20% of parking space for EV charging in
o Rest – Pilots, Charging Infra, etc. residential & commercial complexes
EESL order Charging Infra Guidelines & Standards
• Tender for 10k EVs floated by EESL 2017 • Enable charging stations to operate
without license
Cities eBus tenders 2018 • Focus 9 megacities and several
• 10 cities (prioritized for FAME subsidy) 2018
Jan - Mar highways (every 25kms) routes for
floated eBus tenders installation of chargers
Variety of initiatives were introduced over the years
© Copyright, Confidential, Tata Motors Limited 4
In addition, several state governments have come up with their own EV policies to drive
adoption
Government Personal
2W 3W eBus Fleet 4W
Incentives 4W
States with an approved EV policy
States with a draft EV policy GST Reduction
FAME II Subsidy X
Road Tax / Regn.
Income Tax Wvr.
• FAME II demand subsidies for 4Ws limited to fleets and IT benefits
for personal buyers
• State govts. EV policies : Road tax / registration waiver for 4W
• Delhi & Maharashtra have direct subsidies ( Rs. 1-1.5 lacs) for
Subsidies for vehicles
personal 4W (for limited numbers)
Subsidies for charging stations • Other govt initiatives include:
Incentives for manufacturing o USD 4.6 Bn incentives for battery manufacturing in India
Passenger EV deployment targets (Central govt.)
o Due to Covid-19, DHI has extended the deadline localization
requirement of PMP from 1st Oct’20 to 1st Apr’21
Well structured subsidy given to fleet and personal 4W proposes an opportunity to drive sustainable EV growth even after
reduction / withdrawal of incentives
© Copyright, Confidential, Tata Motors Limited 5
In addition, compliance criteria for upcoming CAFÉ norms would require simultaneous
development of multiple technologies
Corridor for potential CO2 regulation1 Required powertrain portfolio
Year
2015 2020 2025 2030
180
Increase in the regulation of CO2
172
166 Regulation “World of today”
150
144 corridor
135
Less than 10% EVs required
130 121
113
g/km
105 107
100
95 96
“Mix of powertrains”
< 90
68-78 ~80 Equitable composition of ICE & EVs
needed
~70
Govt. signalling corridor shift through
50 steeper reduction in targets (105 g/km) 50
“EV World”
CO2 g/km
Primarily EVs and PHEVs needed
OEMs will need significant share of EVs post FY22 for compliance to CAFE norms
© Copyright, Confidential, Tata Motors Limited 6
OEMs are preponing plans to introduce long range EVs to meet CAFE norms as well as
support Governments intent to drive EV adoption
NO. OF MODELS AVERAGE ON-BOARD ENERGY (KWH)
26
24
40
18
30
10
16
6
FY18-20 FY20-22 FY22-24
FY20 FY21 FY22 FY23 FY24
Increased competitive action would provide multiple options to customers to chose from as well as drive charging
infrastructure development
© Copyright, Confidential, Tata Motors Limited 7
EV TCO expected to reach parity with Diesel for Shared segment by FY21 and Personal
segment by FY23
Without subsidy EV prices expected to significantly drop in
TCO Difference1 (EV vs. Diesel)
With FAME II subsidy (till FY22) future
• Battery cost reduction:
4,00,000 - Battery contributes 30-40% of EV price
2,00,000 - Declining battery prices (10 - 15% p.a.)
Shared
(50k km annual 0 with increasing scale of production and
FY20 FY21
running) -2,00,000 tech. maturity
-4,00,000 • Localization of key EV components in line
FY20 FY21 FY22 FY23 FY24 FY25 with PMP
• Economies of scale due to growing demand
TCO Difference1 (EV vs. Diesel) driven by govt. subsidies
Also, ICEs will continue to witness price inflation
4,00,000
and lead to higher TCO outgo
Personal
(15k km annual 2,00,000 • BS-VI implementation has led to increase in
running) ICE price post FY21
0
FY23 • Diesel price escalation expected at historical
-2,00,000 rates
FY20 FY21 FY22 FY23 FY24 FY25
Financial parity will help drive further adoption
Key Assumptions: Based on current EV Sedan and comparable Diesel Sedan prices; Shared: 3 yr. & 150k km total running; Personal: 7 yr. & 105k km total running; Budget benefits considered;
© Copyright, Confidential, Tata Motors Limited
EV running cost: INR 1-1.5/km; Diesel running cost: INR 4/km; 20 kWh battery capacity; 5% y-o-y cost reduction from EV component localization
8
Agenda
1 Government support for EVs and EV Opportunity
2 Tata Motors journey
3 EV ecosystem
4 Tata Motors Strategy
© Copyright, Confidential, Tata Motors Limited 9
Tata Motors has established itself as a leader in EV market
7000 80%
71%
TIV TML Market Share 5927 70%
6000
60%
5000 47%
4218 50%
4000
40%
3000 2811
18% 30%
1946
2000
20%
1235 11% 1325
1000
10%
349
131
0 0%
FY18 FY19 FY20 FY 21
Nexon EV is driving the growth for Tata Motors as well as Industry
© Copyright, Confidential, Tata Motors Limited 10Comprehensive solutions are being offered to the customer
Product Charging Solutions
Nexon EV with cert. range of 312km Tigor ER EV with cert. range increase
from 140 km to 213 km
• #1 EV in India
• #1 EV for fleet segment
• Won EESL tender for 150 Evs
• Public charging
network with
355+ chargers
• 3000+ AC
Network
chargers
FY20 Jan'21 97
93
• Largest EV Ready network in India • 100+ Captive
51
58 • Dedicated EV Product Specialists charging points
43
27
(graduates) stationed at dealerships
• Vehicle subscription service
enabled
Cities Sales touchpoints Service touchpoints
Solutions provided have helped in alleviating customer apprehensions and led to growth
© Copyright, Confidential, Tata Motors Limited 11Personal segment has significant potential - Nexon was an obvious choice for our first
personal segment EV
Personal segment also a key focus Nexon was the obvious choice
• Personal segment comprises of
80%+ of overall automotive
market
• Imperative for significant
adoption in personal segment to
provide adequate vehicles on
ground for ecosystem sustenance
• Personal segment not purely
focused on TCO
• Requirement of aspirational
performance at an accessible
Bold & Muscular Stylish Design Comfortable & Plush ride
price point
experience
India’s Safest Car
Exhilarating Performance Next-Gen Technology
© Copyright, Confidential, Tata Motors Limited 12Multiple initiatives undertaken to establish Tata Motors as a credible EV leader
Creation of Awareness & Aspiration Building Credibility & Breaking Myths
• State of the art EV tech brand • 1st Electric 4 Wheeler to travel
Ziptron launch from Manali to Khardungla
• Targeted TVCs and Print campaign (Leh)
• An immersive drive experience • #TheUltimateElectricTest to
of India’s own Electric SUV – the bust all myths about the
Tata Nexon EV robustness of EVs
• ‘Mileage Challenge Rally’ for
• Climate Change Mitigation busting myths around range
Expedition in Kerala anxiety
Branding to drive awareness, aspiration, credibility and EV talent
© Copyright, Confidential, Tata Motors Limited 13Precise positioning, focused sales and brand building actions have led to expand our
customer base from early adaptors to early majority
Dec’19-Jan’20 bookings Sep’20-Nov’20 retails
• Business Owners
• Business Owners • Salaried employees
Customer • Salaried employees • Doctors
segment
• Doctors • IT sector employees
• Maintenance seeking retired people
• Government employees
Car • Nexon EV as a secondary
ownership or tertiary car for • Nexon EV as Primary and secondary
distribution majority of customers car for good majority of the customer
3000+ Nexon EVs sold in FY21– comparable to overall EV industry volume in FY20
© Copyright, Confidential, Tata Motors Limited 14Agenda
1 Government support for EVs and EV Opportunity
2 Tata Motors journey
3 EV ecosystem
4 Tata Motors Strategy
© Copyright, Confidential, Tata Motors Limited 15Delivering just on product promise is unlikely to sustain a leadership position --
ecosystem creation across value chain was critical
Full
Typical
valueproduct
chain play
play–
Ecosystem
- OEM competency
advantage
Mobility
Other Parts/ Vehicle design, Vehicle
Raw Materials Vehicle Energy supply & Charging Services/
system sourcing & After Sales Recycling
& Battery mfg. Sale Financing infra-structure New Biz
supply manufacturing
Models
Capabilities of various Tata Group Companies presented an opportunity to create an ecosystem
© Copyright, Confidential, Tata Motors Limited 16Leveraging Tata Group’s strengths and shared vision for nation building, we shaped India’s
first EV ecosystem – TATA uniEVerse
Benefits to customers
• Broader suite of services at competitive
prices
- Preferential access to charging n/w
- Localized components enabling
lower cost
• Convenient and hassle free EV
ownership experience
Benefits to companies
• Make synchronized technological
choices and optimize investments
• Anchor customer-supplier relationship
helps in initial low adoption phase
© Copyright, Confidential, Tata Motors Limited 17Tata UniEverse is enabling Tata Motors to tackle critical ecosystem challenges
Charging infra Localization Battery
• Tata Power plans to expand public • TML’s localization plan is aligned with • Tata Chemicals is planning to play
charging points to 2500 by FY22 Phased Manufacturing Plan across the value chain from
manufacturing of battery actives to
• Tata Power continues to support • TACO battery pack assembly for recycling of batteries
home charger installations by Nexon EV and Tigor EV
deploying on ground dedicated • Pilot plant set up in India to
manpower to support TML’s • TACO Motor and MCU localization manufacture cathode actives with
expansion plan for Nexon EV is underway capability to manufacture different
cathode actives
• Tata Power piloted Society Charging - • Supply chain established to localize
concept of multiple customer sharing other critical EV Powertrain • India plant by 2023, with flexibility for
single charger ( with shared billing) components such as DC-DC convertor, multiple form factors and chemistries
on board charger etc. • Partnering with TACO for battery pack
manufacturing for automotive
applications
Through synchronized strategy & action plan among the companies we intend to maximize competitive advantage
© Copyright, Confidential, Tata Motors Limited 18Agenda
1 Government support for EVs and EV Opportunity
2 Tata Motors journey
3 EV ecosystem
4 Tata Motors Strategy
© Copyright, Confidential, Tata Motors Limited 19Tata Motors has a developed strong approach to retain competitive advantage
Products Sales & Marketing
• Portfolio of offering with different • Drive higher penetration in
body styles and driving ranges micro markets
• India specific Product specs and • Brand building for awareness
differentiated value proposition creation and driving aspiration
• Transition to Modular Multi-
energy platform
Capability Building Ecosystem Solutions
• Acquire capabilities inline with • Partnerships to enable
strategic planks and comprehensive charging offering
• Leverage Tata Group EV Ecosystem • Localization aligned with
government mandate
Driven by cost structure optimization, increased number of models and infrastructure growth, TML aspires to retaining
dominant share in EVs in India
© Copyright, Confidential, Tata Motors Limited 20Thank You © Copyright, Confidential, Tata Motors Limited 21
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