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Tata motors takes a grip on tech prior to EV launch in last-mile delivery.

Tata motors takes a grip on tech prior to EV launch in last-mile delivery.

Encouraged by a sky-high demand for electric vehicles in the last mile delivery system, Tata Motors will launch an EV model for this segment soon. In the same phase, it’s working closely with the e-commerce companies to take an insight into their requirement in terms of range and performance, said Girish Wagh, Executive director, Commercial Vehicle business unit, Tata Motors. Currently, a pure electric platform is under development, for the cargo segment, he confirmed.    

Moreover, Mr. Wagh told Reporters in a conference,” With increasing awareness of EVs, there is a good pull for EV offering in the last mile delivery segment. We have studied the sector in detail and are looking to deliver a solution and not just a vehicle. While the launch is still some months away, we are already working with some end-users to understand their needs.” on Wednesday.   

Its competitor, Ashok Leyland is also planning to launch EVs in the last mile delivery segment. Its EV arm, Switch Mobility will be launching its first light commercial vehicle (e-LCV) in India by the end of the year. Already, it has booked over 2,000 orders. This group is planning to invest $150-200 million in the Electrical Vehicles sector in the coming years.

Due to improved availability of CNG and hike in fuel prices, the leader in the commercial vehicle has witnessed a surge in demand for CNG powered vehicles substantially in the segments between 5 to 16 tonnes. Currently, it accounts for 41 percent of total sales of CNG vehicles.

Wagh also stated, “There is a dying need for CNG vehicles. If a vehicle is plying in an area where CNG availability is not an issue, people are moving to it in lock stock and barrel.” The allocation of gas for transportation has improved significantly which will increase CNG penetration in the country.

For the commercial vehicle market, he commented,” Though the sector is seeing a speedy recovery quarter by quarter, the overall fleet utilization for the transporters has still to meet or cross 2018-19 levels. CV is a cyclical industry but at present time, both (the amplitude as well as duration) have been higher than the last cycles. But thankfully, we are on a path of recovery.”

Even after being on a low base for the last two years, the commercial vehicle market leader expects this industry to grow by more than 20 percent every year. It is based on the GDP growth estimating of 9 percent for the current fiscal. In the first half of the year, the CV market has advanced 44 percent year-over-year (YoY). 


Even, as one is encouraged by the recovery, the additional buyers are leading the demand. The replacement demand involves a very small percentage of the total sales.

Additionally, retail buyers (who own less than 10 trucks) who account for almost half of the total sales, remain very cautious. “Due to high level of delinquency, lenders are too wary on extending credit to the retail buyers,” said Mr. Wagh.

He also pointed out that around 95 percent of trucks are being bought on credit in which financiers play a crucial role. Without their contribution, the CV market can’t grow that well.


  • Tata Motors to launch EV to plug the last mile delivery 
  • Assumes CV market to end the year with over 20% growth
  • Retail buyers still cautious of the new purchase 
  • Fleet utilization for transporters still to reach FY19 levels