HSBC Investor Day

HSBC Investor day

Mr. Shailesh Chandra | 7th Apr 2021

1 EV Opportunity

2 Tata Motors journey

3 EV Ecosystem

4 Tata Motors Strategy

• COVID -19 - Fleet demand muted • Adoption in personal segment improved • Nexon EV  Highest selling EV in India • Tigor ER with 213km range launched 5927 • EESL floated a tender of 10,000 EVs • Tigor EV  highest selling EV • Tigor EV with 140km range launched in India 425 • Personal segment sales reduced due to • Nexon EV launched unavailability of options • Personal segment options - 3 111% • Sales mainly driven by older generation product 2811 • Tata Motors absent from the EV market 44% 1946 5502

1235 58% 1858 850 45% 1786 226 957 953 624 278 160 FY 17 FY18 FY19 FY20 FY21 Personal Fleet Number on bar represents EV sale Number of arrows represent YoY growth Adoption in personal segment has unlocked the growth potential

Phased Mfg. Plan released NEMMP 2020 launched to achieve (by 2020) 2019 • xEV components localization targets • 6-7 million sales of EVs 2013 • ~USD 2 billion savings in fuel FAME-II Policy • ~1.3%-1.5% reduction in CO2 emissions 2019 • Budget of INR 10K Cr • ~60,000-65,000 additional jobs Import duty reduction for EV components FAME-I Policy 2019 • Drive faster adoption and mfg. of EVs Jan • From 15-30% to 10-15% (5% for battery • Budget of INR 895 Cr with focus on packs) 2015 o INR 500 Cr Demand Incentives Modern Building Bye-Laws o April INR 190 Cr for R&D 2018 • 20% of parking space for EV charging in o Rest – Pilots, Charging Infra, etc. residential & commercial complexes

EESL order Charging Infra Guidelines & Standards • Tender for 10k EVs floated by EESL 2017 • Enable charging stations to operate without license Cities eBus tenders 2018 • Focus 9 megacities and several • 10 cities (prioritized for FAME subsidy) 2018 Jan - Mar highways (every 25kms) routes for floated eBus tenders installation of chargers

Variety of initiatives were introduced over the years

Government Personal 2W 3W eBus Fleet 4W  States with an approved EV policy Incentives 4W  States with a draft EV policy GST Reduction      FAME II Subsidy     X   Road Tax / Regn.      Income Tax Wvr.      

• FAME II demand subsidies for 4Ws limited to fleets and IT benefits for personal buyers • State govts. EV policies : Road tax / registration waiver for 4W    • Delhi & Maharashtra have direct subsidies ( Rs. 1-1.5 lacs) for  Subsidies for vehicles personal 4W (for limited numbers)  Subsidies for charging stations • Other govt initiatives include:      Incentives for manufacturing o USD 4.6 Bn incentives for battery manufacturing in India  Passenger EV deployment targets (Central govt.)   o Due to Covid-19, DHI has extended the deadline localization   requirement of PMP from 1st Oct’20 to 1st Apr’21 

Well structured subsidy given to fleet and personal 4W proposes an opportunity to drive sustainable EV growth even after reduction / withdrawal of incentives © Copyright, Confidential, Tata Motors Limited 5 In addition, compliance criteria for upcoming CAFÉ norms would require simultaneous development of multiple technologies

1 Corridor for potential CO2 regulation Required powertrain portfolio Year 2015 2020 2025 2030

2 180 172 150 166 Regulation “World of today” corridor 135 144 Less than 10% EVs required 130 121 113 105 107 100 g/km 96 95 “Mix of powertrains” < 90 68-78 ~80 Equitable composition of ICE & EVs needed ~70 Govt. signalling corridor shift through Increase in the regulation of of CO in regulation the Increase 50 steeper reduction in targets (105 g/km) 50 “EV World” CO2 g/km Primarily EVs and PHEVs needed

OEMs will need significant share of EVs post FY22 for compliance to CAFE norms

NO. OF MODELS AVERAGE ON-BOARD ENERGY (KWH)

26 24

40 18 30

10 16

FY18-20 FY20-22 FY22-24 FY20 FY21 FY22 FY23 FY24

Increased competitive action would provide multiple options to customers to chose from as well as drive charging infrastructure development © Copyright, Confidential, Tata Motors Limited 7 EV TCO expected to reach parity with Diesel for Shared segment by FY21 and Personal segment by FY23

EV prices expected to significantly drop in TCO Difference1 (EV vs. Diesel) Without subsidy With FAME II subsidy (till FY22) future • Battery cost reduction: 4,00,000 - Battery contributes 30-40% of EV price 2,00,000 Shared - Declining battery prices (10 - 15% p.a.) (50k km annual 0 with increasing scale of production and FY20 FY21 running) -2,00,000 tech. maturity -4,00,000 • Localization of key EV components in line FY20 FY21 FY22 FY23 FY24 FY25 with PMP • Economies of scale due to growing demand TCO Difference1 (EV vs. Diesel) driven by govt. subsidies Also, ICEs will continue to witness price inflation 4,00,000 and lead to higher TCO outgo Personal (15k km annual 2,00,000 • BS-VI implementation has led to increase in ICE price post FY21 running) 0 FY23 • Diesel price escalation expected at historical -2,00,000 rates FY20 FY21 FY22 FY23 FY24 FY25

Financial parity will help drive further adoption Key Assumptions: Based on current EV Sedan and comparable Diesel Sedan prices; Shared: 3 yr. & 150k km total running; Personal: 7 yr. & 105k km total running; Budget benefits considered; 8 © Copyright, Confidential, Tata Motors Limited EV running cost: INR 1-1.5/km; Diesel running cost: INR 4/km; 20 kWh battery capacity; 5% y-o-y cost reduction from EV component localization Agenda

1 Government support for EVs and EV Opportunity

2 Tata Motors journey

3 EV ecosystem

4 Tata Motors Strategy

7000 80% 71% TIV TML Market Share 5927 70% 6000

60% 5000 47%

4218 50% 4000

40%

3000 2811 18% 30% 1946 2000 20% 1235 11% 1325

1000 10% 349 131 0 0% FY18 FY19 FY20 FY 21

Nexon EV is driving the growth for Tata Motors as well as Industry

Product Charging Solutions

Nexon EV with cert. range of 312km Tigor ER EV with cert. range increase from 140 km to 213 km • #1 EV in India • #1 EV for fleet segment • Won EESL tender for 150 Evs

• Public charging network with 355+ chargers

• 3000+ AC Network chargers FY20 Jan'21 93 97 • Largest EV Ready network in India • 100+ Captive 58 • 51 Dedicated EV Product Specialists charging points 43 (graduates) stationed at dealerships 27 • Vehicle subscription service enabled Cities Sales touchpoints Service touchpoints

Solutions provided have helped in alleviating customer apprehensions and led to growth

Personal segment also a key focus Nexon was the obvious choice

• Personal segment comprises of 80%+ of overall automotive market • Imperative for significant adoption in personal segment to provide adequate vehicles on ground for ecosystem sustenance • Personal segment not purely focused on TCO • Requirement of aspirational performance at an accessible Bold & Muscular Stylish Design Comfortable & Plush ride price point experience India’s Safest Car Exhilarating Performance Next-Gen Technology © Copyright, Confidential, Tata Motors Limited 12 Multiple initiatives undertaken to establish Tata Motors as a credible EV leader

Creation of Awareness & Aspiration Building Credibility & Breaking Myths

• State of the art EV tech brand • 1st Electric 4 Wheeler to travel Ziptron launch from Manali to Khardungla • Targeted TVCs and Print campaign (Leh)

• An immersive drive experience • #TheUltimateElectricTest to of India’s own Electric SUV – the bust all myths about the Tata Nexon EV robustness of EVs

• ‘Mileage Challenge Rally’ for • Climate Change Mitigation busting myths around range Expedition in Kerala anxiety

Branding to drive awareness, aspiration, credibility and EV talent

Dec’19-Jan’20 bookings Sep’20-Nov’20 retails • Business Owners • Business Owners • Salaried employees Customer • Salaried employees • Doctors segment • Doctors • IT sector employees • Maintenance seeking retired people • Government employees

Car • Nexon EV as a secondary ownership or tertiary car for • Nexon EV as Primary and secondary distribution majority of customers car for good majority of the customer

3000+ Nexon EVs sold in FY21– comparable to overall EV industry volume in FY20

1 Government support for EVs and EV Opportunity

2 Tata Motors journey

3 EV ecosystem

4 Tata Motors Strategy

FullTypical value product chain play play – Ecosystem- OEM competency advantage

Mobility Other Parts/ Vehicle design, Raw Materials Vehicle Vehicle Energy supply & Charging Services/ system sourcing & After Sales Recycling & Battery mfg. Sale infra-structure New Biz supply manufacturing Financing Models

Capabilities of various Tata Group Companies presented an opportunity to create an ecosystem

Benefits to customers • Broader suite of services at competitive prices - Preferential access to charging n/w - Localized components enabling lower cost • Convenient and hassle free EV ownership experience

Benefits to companies • Make synchronized technological choices and optimize investments • Anchor customer-supplier relationship helps in initial low adoption phase

Charging infra Localization Battery

• Tata Power plans to expand public • TML’s localization plan is aligned with • Tata Chemicals is planning to play charging points to 2500 by FY22 Phased Manufacturing Plan across the value chain from manufacturing of battery actives to • Tata Power continues to support • TACO  battery pack assembly for recycling of batteries home charger installations by Nexon EV and Tigor EV deploying on ground dedicated • Pilot plant set up in India to manpower to support TML’s • TACO  Motor and MCU localization manufacture cathode actives with expansion plan for Nexon EV is underway capability to manufacture different cathode actives • Tata Power piloted Society Charging - • Supply chain established to localize concept of multiple customer sharing other critical EV Powertrain • India plant by 2023, with flexibility for single charger ( with shared billing) components such as DC-DC convertor, multiple form factors and chemistries on board charger etc. • Partnering with TACO for battery pack manufacturing for automotive applications

Through synchronized strategy & action plan among the companies we intend to maximize competitive advantage

1 Government support for EVs and EV Opportunity

2 Tata Motors journey

3 EV ecosystem

4 Tata Motors Strategy

Products Sales & Marketing

• Portfolio of offering with different • Drive higher penetration in body styles and driving ranges micro markets • India specific Product specs and • Brand building for awareness differentiated value proposition creation and driving aspiration • Transition to Modular Multi- energy platform

Capability Building Ecosystem Solutions

• Acquire capabilities inline with • Partnerships to enable strategic planks and comprehensive charging offering • Leverage Tata Group EV Ecosystem • Localization aligned with government mandate

Driven by cost structure optimization, increased number of models and infrastructure growth, TML aspires to retaining dominant share in EVs in India © Copyright, Confidential, Tata Motors Limited 20 Thank You