InvestorQ : Do you think the Tata Motors is justified in betting so aggressively on electrical vehicles?
Priyanka N made post

Do you think the Tata Motors is justified in betting so aggressively on electrical vehicles?

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Neelam Naik answered.
4 months ago
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Speaking at the AGM of Tata Motors, N Chandrasekharan had highlighted that the Tatas planned to spend over Rs.28,000 crore in the current year to expedite the shift to EVs. The whole idea appears to be to move from 2% EV density to 25% EV density over the next 5 years. TAMO has already invested a huge sum of Rs.16,000 crore in EVs last year and this is the biggest bet that Tata Motors is taking on the future trend of autos in the world.

In a way, TAMO cannot be faulted for its aggression in the EV because with the competition heating up and the industry undertone shifting, TAMO cannot afford to be complacent. Tesla is a classic example of how an aggressive focus on alternate energy can make one company more valuable than all the other auto companies in the world. Tatas want to be first off the block to tap the EV opportunity in the fastest growing markets.

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