Tata Motors To Possibly Consider Hybrids Subject To Market Demands!
KEY HIGHLIGHTS
- The car maker is open to bringing hybrids for performance reasons and not just emissions compliance.
- This report comes in at a time when multiple states are considering concessions on hybrid cars.
- Tata has also reiterated its focus will remain on EVs.
Tata Motors has always been innovating in the electric vehicle space, but now there are reports that suggest it could enter the hybrid space as well. While the homegrown car maker has been known to dive into petrol, diesel, CNG and EV spaces, the hybrid segment is something that remains untapped by Tata.
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Tata Motors To Consider Hybrids; Details
The Indian car maker is reportedly considering to enter the hybrid space, given that many states are offering or are considering to offer tax concessions and benefits on hybrid vehicles. Most notably, Uttar Pradesh has waived registration tax on hybrid vehicles, while other states such as Karnataka are also considering to offer similar concessions on hybrid vehicles.
Tata Motors does state that EVs will continue to remain its key focus area and it believes that electric vehicles are the destination technology. As such, the car maker is concerned that while hybrid technologies are economically viable, entering the hybrid space and availing said concessions could possibly derail India's EV ambitions on a larger, long-term scale.
The car maker categorises hybrids in the same bracket as petrols, and as such its internal forecasts 30% of its volumes coming from EVs, 27% from CNG, about 6-10% from diesel, and the remaining 33% from petrols. The car maker has said that its entry in the hybrid space will depend on market competitiveness, but it could also do so for performance reasons, and not just solely for emissions compliance.
That said, the car maker has not commented on any specific future hybrid cars that will arrive. However, Tata recently launched the Harrier EV, and it also seems all set to launch the Sierra and the Sierra EV sometime later this year.
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Verdict
Tata Motors, when compared to brands like Maruti Suzuki, has a rather different approach when it comes to alternative fuels. However, the fact that market forces could make Tata consider diving into the hybrid space shows how impactful customer demand can be.
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