Tata Motors.
Tata Motors.
Tata Motors.
1).Range Concerns
The biggest factors holding EVs down is the lack of technology that allows electronic vehicles to
travel longer distances. Add to that a lack of charging station infrastructure, EVs just become a
second, city car for the masses.
Another problem regarding lack of technology is that Indian car manufacturing companies lag in
the battery technology. With not many options of their own they have to import batteries from
foreign countries at higher prices thus inturn increasing manufacturing costs and thus increasing the
pricing of the EVs.
3).Public Perception
Like any new technology that is yet to be tried, the people will have an opinion towards it. And
with the many drawbacks that a technology that is yet to reach its full development/potential,
people are bound to be a bit sceptical.
EV technology, like we said, is a relatively new technology, especially here in India. Therefore,
the infrastructure to facilitate longer distance travel in such a vehicle doesn’t exist. Hence, as long as
that isn’t there, the EVs are bound to certain distance limits.
5).Lack of Policies that actually support EVs rather than bringing it down, like FAME.
FAME doesn’t cover a majority of passenger vehicles including scooters, passenger cars and
private vehicles. And thus, as long as that isn’t there neither the local manufacturers nor the foreign
investors will be enticed to invest in the EV industry.
Related to lack of economies of scale, lack of properly developed technology, the EV vehicles are
priced atleast 15-20% higher than their ICE counter parts. Discouraging people from spending more
when cheaper versions are still available.
As of now there aren’t many models out there for the public to select from. While that is boud to
change as time passes it as of now discourages the potential buyer.
8).Competitors
The crude oil crisis has pushed all major automotive houses to develop EVs, and this has resulted
in a flood of concept vehicles, new models all lined up at the same time by all the different
companies.
9).Chip Shortage
With the pandemic putting the world to a metaphorical “halt”, many factories shut down. One
such industry that was affected by it was the software CHIP industry. Therefore, now due to this a
chip circuit boards are in demand but there is a supply shortage. This will affect not just the EVs but
the automotive sector as well along with many other sectors.
These are some of the major threats that present themselves for any EV company including Tata that
wants to set foot in the electronic vehicles market. Now not every threat can be evaded, however
we have come up with some solutions that might help the company do just that
STRATEGIES
We suggest that the company works and develops portable chargers for EVs. I mean, there
ones for Mobile Phones and Laptops right? Why not EVs. It not only solves the issue of long distance
travel to places where there might not be any charging stations available, either in the destination or
the on the route that we have identified as a major concern under threats. It also helps changing the
way how people look at EVs and Long distance travel.
Now we know, that a powerbank for a car won’t obviously come cheap. But what we also
understand is that it is not going to be required in most of the customer’s day to day life either.
Therefore, we could also set up shop in cities that give such chargers out on rentals. To Tata EV Car
club members at a discount.
N.I.C.E is exactly what it suggests it is. It is nice. What we suggest the company together with
TATA POWER SOLAR and with tie ups with NHAI develop unmanned plug-n-go charging stations
thoroughly powered by solar power. This helps reduced the carbon foot print left by the EVs. Helps
establish a chain of chargers connecting cities throughout the country helping reduce the anxiety
with range related issues. It also helps reduce cost of recharging since renewable energy is being
used. We again suggest providing a discount to TATA EV CAR CLUB MEMBERS.
Like many petrol and diesel suppliers of the country have already started doing, charging
infrastructure within city limits can be developed by joining hands with our regular fuel suppliers
who will also be providing charging stations.
Tata Sons, the private company that holds the 29 public listed companies that consist of the TATA
EMPIRE, are in talks of revamping their Organisational Structure, something that is being backed by
ex-chairman and present chairman of TATA TRUST, after winning the mismanagement case against
Cyrus P. Mistry, to introduce a CEO to redevelop and refocus on achievement of tasks at hand. This
will provide a new aspect to how business is done at the tata group which presents as another
opportunity.