Tata Power aims to grow in the home EV charging segment

Through its home charging division, Tata Power has identified a potential market niche in the electric vehicle (EV) charging industry. The company's cost-plus pricing approach and service fees are to thank for its success in this market.

Within Tata Power's EV charging business, this specific niche has grown to become a pillar of profitability.

As published by CNBC-TV18, Tata Power's Managing Director and CEO, Praveer Sinha, said that the company's cost-plus pricing strategy is the reason for the excellent profits in home charge. In this approach, Tata Power charges a fee for both the related services and the EV chargers. This all-encompassing strategy, which addresses both the hardware and services, ensures the business will maintain a profit margin.

The home charging market has enormous development potential, according to Sinha, who said "Currently, we have 50,000 home chargers, and we anticipate this quantity to grow substantially in the five years to come." Tata Power's dedication to supplying the rising demand for at-home EV charging solutions is demonstrated by this expansion.

“It's crucial to keep in mind, though, that one of the three essential elements of EV charging is home charging,” Sinha stressed that there are three different types of EV charging: fleet charging, home charging, and public charging. Tata Power has found success with its home charging business, but it also actively participates in fleet charging for commercial vehicles and public charging infrastructure to accommodate a variety of EV consumers.

The public charge, which is now a very small component, is the only area where returns have not yet materialised, according to Sinha.

The EV market in India seems to have a bright future, and Tata Power is establishing itself as a major participant. The expansion of the home charging and other EV charging segments is anticipated to play a crucial role in promoting the adoption of electric vehicles across the nation as the country continues its transition towards sustainable transportation. Tata Power is committed to assisting India's renewable energy revolution, as seen by its emphasis on profitability and its plans to increase its charging infrastructure.