Tata Motors

Tata Motors’ manufacturing emissions have remained low thanks to its low-carbon aligned manufacturing emissions targets. However, increases in emissions intensity during periods of lower production suggest that efficiency gains could be made in the company’s production processes.

Tata Motors has begun to manufacture alternative low-carbon mass transport solutions. In 2019, it supplied a fleet of battery electric buses to Lucknow City Transport Services Ltd and West Bengal Transport Corporation. The company is also in the process of testing prototypes of fuel cell electric buses. Details regarding the size and profitability of these business activities were not identified. Given that Tata Motors’ largest sales volume comes from commercial vehicles, this is a viable opportunity for the company to reposition itself towards a low-carbon economy.

Low-carbon vehicle share

Given the currently very significant share of sales that come from internal combustion engine vehicles, Tata Motors risks having high levels of fleet emissions that are locked in and unable to be reduced. The company only released its first passenger electric vehicle, the Tigor EV, in the final quarter of 2019. Tata Motors should rapidly shift away from conventional internal combustion engine vehicles to increase its share of sales that come from low-carbon vehicles. This move would help the company to become on track to meet the low-carbon pathway allocated to the company, before the cost of changing direction is too high.

Tata Motors committed to using 100 percent renewable energy by 2030 and signed up to the RE100 initiative. By 2020, its manufacturing emissions will be reduced by 42 percent and 74 percent by 2040, as compared to its 2012 levels. The company has stated that it intends to reduce fleet emissions, but no publicly available fleet emissions reduction target has been set.

The company reports that it will achieve its 100 percent renewable energy goal by using renewable sources at production sites. However, its renewable energy commitments are undermined by a lack of fleet emissions reduction targets that would help tackle the company’s principal emissions source.

Tata Motors’ first electric passenger vehicle was launched in the final quarter of 2019. The company is also making efforts to decarbonise its commercial fleet, with a range of electric buses already available in addition to fuel cell electric buses currently in the testing phase.

Until recently, Tata Motors has fully relied on conventional internal combustion engine vehicles for its light duty passenger vehicle sales.

Tata Motors has not yet set a fleet emissions reduction target. While the company has low-carbon activities, it has not reduced its fleet emissions to the extent that is required under the low-carbon pathway allocated to the company, which represent the most significant share of its emissions. Tata Motors’ commitment to decarbonise is, therefore, unclear.