Tata Motors will source EV battery packs from Octillion Power Systems, diversifying its supply chain to enhance performance.
Tata Motors which is one of the prominent companies involved in the Indian electric vehicle market is going strong now. Having added electrified models such as the Tiago, Tigor, Punch, Nexon, and recently revealed the Curvv EV brand, the company has dominated the first half of 2024 with a spectacular 60.02% market share. This dominance is evidence of Tata Motor’s dedication to popularizing Battery Electric Vehicles (BEVs) in India.
Switching to Octillion Power Systems
Another decisive measure is the transition in the procurement of battery packs currently with Tata AutoComp Systems stemming from Tata Motors itself to the Chinese company Octillion Power Systems. This decision is geared towards better performance and bringing more product variety differentiated supply chain and technologies. Though lithium-ion cells are not produced in India yet many automakers including Tata Motors import these cells but manufacture battery packs and this also fits the Indian government aspiration of localization.
Implications for Tata’s EV Models
The latest Curvv EV launched in the market with a 45 kWh battery pack and a 55 kWh battery pack will be the first model of Tata to incorporate battery packs procured from Octillion. Whereas, Tata’s subsidiary will be the supplier of the battery for the 55 kWh model, the batteries for the 45 kWh model will be imported from Octillion. This may be a decisive step as far as Tata Motors’ approach to EV manufacturing is concerned and can help to increase output and bring economies of scale.
The change in suppliers of battery packs from LG Chem to Octillion Power Systems is a pointer to the fact that Tata Motors has been aligning its EV strategy to ensure the supply chain is good enough to meet its EV optimization without compromising on efficiency. Thus, the company’s further evolution and enhancement of its presence could strengthen the company’s position in the Indian market of EVs.
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