Table of content
Understanding the Dynamic of any automobile industry:
The traditional vehicle market was highly dependent on other factories/companies, in other words, a car company is more likely act as an assembly line where all the parts (like chases, semiconductor chips, mirrors, lights, seats) are brought from other factories and combined together to produce a finished product. The same principle follows in the newly emerging electric vehicle industry too. The batteries, BMS, motor, controller, semiconductor, software support, and many such components are being ordered from other companies and assembled to create a finished performing electric car.
But the question is, how only a few contenders like TATA or Tesla are ruling over the whole industry? Here is the one-word answer; “Ecosystem Advantage”
The amount of market cap Tesla has captured among the large-established companies that too without even spending a penny over their marketing campaign is unimaginable. And the reason behind it isn’t technology or popularity (any company can build that) that helped Tesla to emerge out as a true competitor is a robust ecosystem for manufacturing their cars and enabling their users for enjoying their product.
In India, the TATA is doing similar if not the same. The TATA universe has the advantage over every possible factor that can affect the manufacturing of electric cars or user-friendliness and here is why it’s very difficult for any other company to defeat TATA in the EV game.
1. Steel makes the difference:
There is no competition to TATA motors car’s strength, built quality, and safety measures at their offering price range. But the reason why no other company is able to achieve the same is the high price of steel and TATA dodges this problem with their own steel plant i.e., TATA steel.
2. Winner is the one with battery on their side:
The lithium-ion battery is the most important, costly (nearly ¾th of the vehicle), and non-indigenous of all the other components of an electric car. But as the TATA chemical is working on making the Batteries more affordable and indigenous TATA no doubt has an advantage over any other EV-making company in terms of battery manufacturing.
3. Software is on boom:
Electric vehicle’s BMS technology and software are underrated but one of the most curtail components for making a successful (High range and performance) electric vehicle, and the TATA Elxi is considered to be one of the best companies that TATA has captured for coding software in their semiconductor BMS chips which can provide a higher range for their vehicles. In the beginning, when the Nexon EV launched in the market there was a flood of users complaining about the difference in promised and real-life vehicle’s range but after fixing issues software issues in the BMS, the vehicle is now performing as expected or even more. And this way the company avoids spending more on software and the company is also free to bring any change in their software at any time they want.
4. Small components make big differences:
Including India, the world has faced the issue of semiconductor shortage which let the world leaders and company founders understand the importance of components as small as semiconductors and after understanding this the TATA immediately rolled out the statement of investing in electronic components and making their one of the factories for the same in the southern part of India (Tamil Nadu, Telangana, or Karnataka). This decision will definitely support the EV industry if not directly but indirectly. The cost required for semiconductor and electronic components will reduce a lot.
This was tata’s eco-system advantage that will support TATA manufacturing, and price placing their EV’s. But here is how TATA will become people’s favorite and affordable brand for the EV market.
1. Charging stations are the most crucial:
The most common concern when you buy 15-20 lakh electric car is taking it to long run with no compromise in performance and range anxiety in your head. But the condition of charging infrastructure right now is not that supportive, but TATA is constantly working upon it and having tata power as subseries TATA gets advantage of price over energy consumption.
2. Indian’s love finance:
This subsidy of TATA motor avail EV users to purchase their vehicles at low-cost EMI’s and make easy finance of their vehicles.
3. Who can defeat the one with software giant on their side:
The TCS is India’s one of the most valued companies with their excellence in tech support and customer support. So, unlike other companies, tata don’t need to outsource their costumer support and tech support for their application and website.
Beating TATA motors in their own game is near to impossible. But still, there are a bunch of gaps that remain in the market that TATA cannot fill and that’s where the emerging startups like Ather, ola electric, Okinawa, revolt motor come in. Also, the moral support of the audience and the faith of people in every TATA company gives them one more conpetitive edge.
Share this article with the one who needs this the most: