Tata Motors Anticipates Continued Growth in Electric Commercial Vehicle Demand

MUMBAI — Tata Motors Ltd expects demand for its electric commercial vehicles (CVs) to remain strong and continue to grow, backed by a robust order book across various segments, according to Managing Director and CEO Girish Wagh.

Speaking to analysts, Wagh stated that the overall demand outlook for electric vehicles remains positive. During the first quarter of the fiscal year, Tata Motors recorded over 3,400 vehicle orders across electric commercial vehicle segments, extending the momentum observed in the second half of the previous year.

The company also anticipates upcoming opportunities through the PM-eBus Sewa initiative, with new tenders expected soon. Additionally, Wagh noted that the electric small commercial vehicle (SCV) pickup segment, which operates primarily in the retail market, is performing well. The total cost of ownership (TCO) parity of models like the Intra and Ace Pro has become increasingly attractive compared to their internal combustion engine (ICE) counterparts, supporting the demand outlook.

Addressing manufacturing and supply chain aspects, Wagh clarified that in-house production capacity is not a constraint. However, a supply chain bottleneck involving cells imported from China has impacted the Intra EV. This issue arose due to a concurrent rise in electric vehicle adoption and cell demand within China, which extended lead times for procuring cells and converting them into batteries in India.

To mitigate this, Tata Motors placed higher-volume orders approximately two months ago. The company expects the supply chain constraints to be completely resolved by the end of the ongoing quarter. In the first quarter of FY27, Tata Motors reported a more than four-fold increase in electric SCV volumes, reaching approximately 3,200 units, alongside an order book of over 850 electric buses.

"Tata Motors' outlook highlights a crucial transition phase in the commercial mobility sector. As total cost of ownership parity improves, customer adoption naturally accelerates. However, this growth also exposes supply chain vulnerabilities, particularly regarding reliance on imported components like battery cells. For businesses scaling in the hardware and EV ecosystems, building resilient supply chains and diversified sourcing strategies will be vital to sustaining momentum and meeting rising market demand efficiently." — Dr. Shishir Gupta, Founder & CEO, StartupLanes