e-Nexon to contribute 5% of company’s PV sales soon: Tata Motors CFO
The e-Nexon, the electric version of the Nexon, has helped the company to increase the share of EVs in the company’s total passenger vehicle sales and will soon account for 5 per cent in total sales, P B Balaji, chief financial officer, told reporters during the earnings call. The share of e-Nexon has been rising consistently. Tata Motors retailed a total of 53,800 cars in June quarter, up 189 per cent year-on-year.
The e-Nexon contributed one per cent in FY20, climbing up to 2 per cent in FY21. It now accounts for 3 per cent in its overall volumes. “In some markets it’s neck-to-neck with diesel,” said Balaji. In the three months to June, Tata Motors posted the highest ever quarterly sale of 1715 units of e-Nexon. It helped the company to improve its market share to 77 per cent in Q1 FY22 vis-à-vis 61.7 per cent of Q1 FY21.
Encouraged by the response, the company plans to launch 10 electric vehicles by 2025, N Chandrasekaran, chairman, Tata Motors said in a letter to shareholders in the company’s latest annual report. An improvement in charging infrastructure, a lower running costs compared to internal combustion engine powered vehicles coupled with tax exemptions and incentives is leading to an increased demand, said Balaji. Tata Motors is in the process of ramping up capacity for e-Nexon but is constrained by the chip shortage, he added.
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