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Tata Group Subsidiary Agratas Energy Storage Solutions Signs Electric Vehicle Battery Plant Deal Worth USD 1.58 Billion

India: India’s leading electric passenger vehicle manufacturer, Tata Group, is making efforts to create its own supply chain for complete electric vehicle segments as the company plans to launch a series of electric vehicles for the Indian market. The company has planned to build a lithium-ion cell factory for electric vehicles with an investment of around USD 1.58 billion (130 billion rupees) in Gujrat.

Tata Motors is one of the prominent electric four-wheeler players that capturers major market share in the electric vehicle category. Tata Motors, which saw a fivefold increase in electric vehicle sales, topped the Indian EV industry. The company captures major market as it sold 15,198 units of Electric vehicles in 2021-22, against 3,523 units in 2020-21. The company also expects half of its sales to come from electric vehicles by 2030.

The company is betting big on this segment in India. Under the recent lithium-ion cell factory investment, the company has planned to maintain an initial manufacturing capacity of 20 gigawatt hours (GWh) and is planning to double its manufacturing capacity in the second phase.

The deal includes a joint memorandum of understanding between Tata Group subsidiary Agratas Energy Storage Solutions and the government of the western state of Gujarat under the new Electronics Policy (2022–28). Over 13,000 people are projected to benefit from the venture's enormous job prospects, both directly and indirectly, and it will also help the state's economy flourish.

“The company is creating its own supply chain for its range of electric vehicles, and in the coming years, the adoption of electric vehicles will rise as government subsidies and other initiatives are expected to influence market growth. Similarly, the market presence of Tata Motors is also expected to rise as the company focuses on launching new electric vehicles in the coming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

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