TaMo bets on electrification in small CVs, drives in e-version of Ace

Bags order of 39,000 units from e-com players

Tata Motors expects the penetration of electric vehicles (EVs) will account for 25-30 per cent of its small commercial vehicles (SCVs) by 2030. The availability of battery operated vehicles in the intra-city segment will make the transition possible, said the company’s top official.

The Tata Group flagship took the wraps off the Ace EV on Thursday. It will commence deliveries of the model from the September quarter as it seeks to tap the growing demand for sustainable last-mile delivery vehicles by e-commerce companies. Tata Motors sells 150,000 units of the Ace per annum. Of this, e-commerce firms buy close to 20,000 units annually. 

“There are unknowns in the form of supplies and demand, but I won’t be surprised to see a 25-30 per cent penetration on SCVs,” Girish Wagh, executive director, Tata Motors, told Business Standard.

The Ace EV will mark a new beginning in the CV business of the company, said Wagh, who was instrumental in developing the Ace 17 years ago, a model that in many ways revolutionised the last-mile delivery segment.  

On whether the CV business will go the passenger vehicles way and carve a separate company for EVs and raise funds, Wagh said Tata Motors PV had demonstrated the possibilities. “Right now, our focus is on building capabilities and strengthening the business. The inherent valuation will continue to go up. So we are not looking at that as a milestone.”

In addition to electric, Tata Motors is working on hydrogen and LNG technologies for its range of commercial vehicles.

The EV Ace is the company’s first offering in the cargo segment. Tata Motors has sold close to 645 electric buses running across nine cities. Cumulatively, these buses have travelled 34 million kilometres.

The prices of the electrified version of the Ace, the sub-one tonne offering launched in 2005, will be revealed at the time of the commercial launch. Tata Motors has signed an agreement with a clutch of e-commerce companies, including Amazon, Big Basket, City Link, DOT, Flipkart, LetsTransport, MoEVing, and Yelo EV. Cumulatively, it has bagged an order for 39,000 units from these companies for the Ace EV.

“Sustainable mobility is a trend as well as an imperative and is irreversible. It’s a global mega trend. At the Tata Group, and Tata Motors in particular, we have embraced this fully and made it into a business model that integrates sustainability as one of the key pillars,” N Chandrasekaran, chairman of Tata Sons, said at the unveiling.

The Ace has been a category creator and the company is deeply encouraged by the interest the EV version has generated. Tata Motors will continue to engage and build e-cargo solutions not only on the ACE platform but also in other categories, said Chandra. Based on the company’s EVOGEN powertrain that offers an unparalleled certified range of 154 kms, the EV ACE claims to offer a safe, all-weather operation with an advanced battery cooling and regenerative braking system to boost the driving range.

The Ace EV’s container is made of light weight and durable materials to meet the requirements of e-commerce logistics.