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TATAPOWER - Tata Power News Story

₹57.3 4.4  8.2%

Last Trade - 8:16am

Mid Cap
Market Cap £1.47bn
Enterprise Value £6.61bn
Revenue £2.99bn
Position in Universe 183rd / 3000

UPDATE 1-Tata launches 'ecosystem' to kickstart Indian clean vehicles

Tue 28th January, 2020 10:25am
* Indian government keen to curb pollution
    * Battery cost a big challenge to affordable EVs
    * 'Ecosystem' plan announced ahead of electric SUV launch
    * Tata to launch 3 more EVs over next 2 years

 (Updates with details, comments from the launch)
    By Euan Rocha and Promit Mukherjee
    MUMBAI, Jan 28 (Reuters) - India's Tata Group is making its
biggest push yet towards clean vehicles with plans to make
electric cars and batteries, set up charging stations and build
a battery recycling plant, senior executives said on Tuesday.
    To try to curb pollution and reduce its fuel import bill,
India is pushing automakers to produce electric vehicles, but
has faced resistance from some that say the charging
infrastructure needs to be set up first and battery costs are
too high to allow the manufacture of affordable EVs.
    Companies from the steel-to-autos Tata conglomerate plan to
address some of these issues. 
    Tata Motors  TAMO.NS , Tata Chemicals  TTCH.NS , Tata Power
 TTPW.NS  and Tata Croma, a chain of stores selling consumer
electronics, are pooling resources and expertise to build an
electric vehicle ecosystem, the executives told reporters in
    The plans were announced ahead of the launch of Tata Motors'
electric sport-utility vehicle (SUV) Nexon EV, which was
attended by N Chandrasekaran, chairman of Tata Sons, the
automaker's parent group, and family patriarch Ratan Tata.
    "This is the launch of an ecosystem, which is the real need,
not just another vehicle launch," Guenter Butschek, managing
director at Tata Motors, which also owns the British luxury car
brand Jaguar Land Rover, said. 
    Tata Power, which has set up 100 charging stations, will add
another 650 in more than 20 major Indian cities over the next
year, the company's CEO Praveer Sinha said.
    All stations will support fast charging and will be linked
to a mobile application, which has been developed with Tata
Consultancy Services (TCS)  TCS.NS , for payments and to check
the availability of chargers, Sinha said. 
    Tata will use its chain of Croma stores to display digitally
 its EVs, and some stores could offer test drives and charging
stations and may even sell cars.
    The Nexon EV, priced starting at $19,700, is one of four
electric car models that Tata Motors plans to launch over the
next 2 years. The others will also be an electric version of its
existing cars and will include a hatchback, sedan and SUV.
    The EV will be sold through Tata dealers and its retail
Croma stores, Butschek said during the launch, adding the
company will offer an 8 year warranty on the battery. 
    One of the biggest hurdles to building affordable EVs in
India is the cost of the batteries, which are typically imported
making them expensive.
    Tata Chemicals has built a battery recycling centre and
acquired land to set up a battery manufacturing plant that is
expected to be ready in 3 years, CEO Ramakrishnan Mukundan said.
    It plans to invest $113 million in the plant, which will
have initial capacity of 200 megawatts with potential to scale
it up to 2 gigawatts, depending on domestic and global demand,
he said. 
($1 = 71.0700 Indian rupees)

 (Writing by Aditi Shah; Editing by Sanjeev Miglani and Barbara
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: aditi.shah.thomsonreuters.com@reuters.net;
twitter: @aditishahsays))
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