Tata Motors has decided to invest Rs 22,400 crore in Jaguar Land Rovers this year. The company is preparing to raise capital for its electric vehicles business. Tata Motors has decided to increase the share of electric vehicles in its future sales to 25 per cent. At present it is only 2 per cent.
The company’s chairman N Chandrasekaran told the company’s shareholders during the virtual AGM that during the financial year 2020-21, Tata Motors had invested Rs 19,800 crore in Jaguar Land Rovers. But during the current financial year, an investment target of Rs 22,400 crore has been set.
The company will invest in hydrogen fueled vehicles
Chandrasekaran said that the company is investing in hydrogen fueled vehicles. He said the company is investing in hydrogen and has received orders for 15 hydrogen fueled vehicles from IndianOil. The company has also made seven vehicles but these are in the trial stage. For this a long term plan is needed and we are working on it.
Ten models of electric vehicles to be launched by 2025
Chandrasekaran said that Tata Motors’ target for electric vehicles is very ambitious. He said that the company wants 25 percent of its sales to be from electric vehicles. At present it is only two per cent. The company will launch ten models of electric vehicles before 2025. Apart from cars, it will also make electric commercial vehicles. He said that the company may also think of setting up a separate battery business for electric vehicles. The company is also emphasizing on increasing the charging station. It intends to build 1000 charging stations in the next few years. For this, plans are being made to work with Tata Power in 25 cities.
Company in loss but investor confidence remains intact
According to the results of Tata Motors announced on 26 July 2021, it has a loss of Rs 4,450.92 crore in the first quarter 2021-22. However, this is much less than the loss of Rs 8,437.99 crore in the first quarter of the previous fiscal (2020-21). However, it should be noted that the lockdown started in the country during the first quarter of the last financial year and the sale of vehicles almost came to a standstill. There was a huge fall in the shares of Tata Motors during that time.
The company’s revenue increased to Rs 66,406 crore in the first quarter of the current financial year, which is more than double the revenue of Rs 31,983 crore in the same period last fiscal. But with the increase in the price of its shares, it is clear that investors have faith in it.