Tata Motors

Tata Motors significantly reduced its scope 1 and 2 emissions intensity by 42% between 2015 and 2020. This reduction was aligned with the company’s 1.5°C pathway. The greatest reductions were made in scope 2 emissions, through onsite renewable generation and establishment of power purchase agreements for renewable energy. The company should establish a science-based target for its scope 1 and 2 emissions to drive continued reductions in scope 1 and 2 emissions.

Tata Motors has no near-term emissions targets for either its scope 1 and 2 emissions or its scope 3 emissions. However, Jaguar Land Rover has set a target to reach zero tailpipe emissions by 2036, which equates to zero scope 3 emissions (on a tank to wheel basis). This level of ambition is sufficient to meet the company’s 1.5°C pathway. Jaguar Land Rover should set short-term science-based targets to incentivise action to meet this goal and Tata should set similar targets for its non-Jaguar Land Rover business. Jaguar Land Rover is also aiming to become a net-zero carbon business across its whole supply chain, products and operations by 2039, though it is unclear if offsets will be used to meet this target.

Between 2018 and 2020, Tata’s low-carbon vehicle sales increased from an estimated 1% to 4.5% of total sales, but this was not enough to meet its 1.5°C pathway. Jaguar Land Rover is aiming for 60% of its sales to be battery electric vehicles by 2030. Tata has not set a similar goal for its Tata-branded business, though it is aiming to have a portfolio of 10 EV models by 2026. The company will need to significantly increase its sales of low-carbon vehicles across all its businesses to deliver the 64.5% by 2030 low-carbon vehicle share required by a 1.5°C pathway.

Tata demonstrates a mixed climate policy positioning. The company has supported some climate policies such as Gujarat’s Electric Mobility Policy. However, the Jaguar Land Rover subsidiary is also on the board of trade associations opposing climate policy such as the European Automobile Manufacturers’ Association which recently stated it does not support the proposed target for a 100% reduction in CO2 tailpipe emissions from new cars and vans by 2035. Tata should implement processes to review and withdraw from associations that oppose climate policy.

Tata Motors is developing several low-carbon business models outside automobile manufacturing. It is manufacturing electric buses, in 2020 delivering the first 26 of a 340 Tata Ultra Urban e-buses order. With other Tata companies, Tata is establishing a Tata UniEVerse to support e-mobility in India, including charging, battery manufacturing and recycling and financing. It also is providing long-term electric vehicle rental programmes through the Jaguar Land Rover Pivotal and Tata Nexon EV subscription services. All these business models are at early stages, and the company should set clear targets and deployment schedules to develop them.

Tata has not set a target for scope 1 and 2 emissions. Jaguar Land Rover, which accounts for 84% of Tata’s light-duty vehicle scope 3 emissions, has set a target to reach zero scope 3 emissions by 2036. Jaguar Land Rover is aiming for a 60% battery electric vehicle sales share by 2030.

Tata’s India business plans to have 10 EV models by 2026 and create widespread charging infrastructure with Tata Power. Tata is also aiming for 100% renewable electricity use by 2030 in its India business.

In 2020, 4.5% of Tata’s sales were low-carbon vehicles. Tata invested INR 2 billion (USD 27 million) or 1% of its total capital expenditure to research and development into electrification in 2020.

Tata’s scope 3 emissions intensity decreased from 106.8 grams CO2 per passenger kilometre (gCO2/p.km) in 2015 to 101.9 gCO2/p.km in 2020. The company significantly reduced its scope 1 and 2 emissions intensity by 42% over the same period.

The company needs to set more comprehensive science-based targets, including short-term targets, to reduce emissions. Tata should also ensure its climate lobbying and trade association membership is consistent with its climate ambition.