Posts tagged: Tata Motors Chery EV platform

India's largest electric car maker Tata Motors is planning to license an automaking platform from Chinese automobile company Chery. This step is being taken to bring the company's premium electric vehicle (EV) launch back on track after the delay. Four different sources have given this information to news agency Reuters.

Tata Motors may use Chery's platform to locally manufacture at least two electric cars under its premium Avinya brand. The first of these cars is expected to be launched in 2027. This partnership will help Tata gain a stronger position in the fast-growing premium EV segment, where domestic and international competition is increasing.

What is the plan?

Tata Motors was planning to launch premium EVs under the Avinya brand for a long time. The Avinya concept car was unveiled in Mumbai in 2022, symbolizing the company's future EV technology. However, the launch was affected due to some delays. Through Cherry's platform, Tata will get faster access to advanced batteries, motors and vehicle architecture, which will reduce development costs and enable quicker market entry.

Cherry Collaboration

Chery Automobile is one of the leading EV and ICE vehicle companies in China, which also has a strong export network globally. The deal will be based on technology licensing, which is likely not to include equity stake. This fits into a series of recent technology transfer deals with Chinese companies in India, while geopolitical sensitivities remain between the two countries.

Preparation to target premium segment

The EV market is growing rapidly in India. Tata Motors is currently the largest EV company in the country, but BYD, MG and other players are challenging in the premium segment. The vehicles launched under the Avinya brand will focus on modern design, long range and premium features, which will attract customers from mid to high income category.

What did the companies say?

This partnership will help Tata Motors to build a strong portfolio by 2027. According to sources, the company will focus on local production, which is in line with 'Make in India' goals and will also create employment. However, there is only speculation regarding this deal and no concrete information is yet to come. Let us tell you that till now Tata Motors has not made any official comment on this news. Cherry also did not react to this.