Tata Motors bullish on electric commercial vehicle demand trajectory

Tata Motors is banking on sustained demand for its electric commercial vehicles, with Managing Director and CEO Girish Wagh expressing optimism about market prospects during interactions with analysts. The company maintains a healthy order backlog spanning various vehicle categories, positioning it well for continued expansion in the nascent EV segment.

Wagh noted that supply chain pressures related to battery cell imports from China, which had affected the company's Intra EV model, are expected to ease by the end of the current quarter. "The demand outlook on EVs is quite positive," he stated, signalling confidence in market conditions.

Tata Motors entered the fiscal year with over 3,400 vehicle orders for its electric commercial vehicle range, reflecting sustained buyer interest following strong performance in the second half of the previous year. The company is also capitalising on opportunities from the government's PM-eBus Sewa initiative, with fresh tenders expected to materialise.

Particularly encouraging has been the performance of Tata's electric small commercial vehicles, which operate entirely in the retail segment. The vehicles' attractive total cost of ownership metrics have resonated with private buyers, underpinning the segment's commercial viability.