Automaker Tata Motors is aiming for every third car it sells to be powered either by natural gas or electric in the near future as it seeks to cut down reliance on fossil fuel-powered models.
What Happened? Tata Motors sees gas-powered models and battery electric vehicles each make up 15% of its passenger vehicle portfolio from the current 8% and 9%, respectively, in the next three to four years, the Economic Times quoted Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, as saying.
This comes as the Tata Group company launched the Altroz iCNG and plans to roll out an additional electric model this fiscal year.
Indian automobile manufacturers, including Tata Motors’ rivals Maruti and Hyundai Motor, have been ramping up investments in natural gas models as the fuel becomes more easily available and running costs go down.
Analysts at UBS recently gave Tata Motors a "sell" rating, saying the electrification of premium cars is a bigger risk than the market thinks and that the automobile firm's domestic market share is nearing its peak as competition heats up.
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UBS also said that Tata's market share in India's passenger vehicle segment was near its peak due to a relatively weaker launch pipeline than market leader Maruti, in conjunction with increasing competition in the electric vehicle (EV) market.
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