Comprehensive Electrification Alternative fuels Rajendra Petkar President CTO

Comprehensive Electrification & Alternative fuels Rajendra Petkar President & CTO, TATA Motors Limited MOVE: A Global Mobility Summit, 7 th September 2018, Delhi

Electrification and Improved ICE will co-exist for long time Independent Estimates (Global EV Penetration) Yr 2020 Yr 2025 Yr 2030 Mc. Kinsey 4% 11 – 17% 22 – 32% Moody's 2% 7 – 8% 17 – 19% Bloomberg 3% 8% 24% Bernstein < 5% 10% 30% Govt of India Vision – Electric Cars (for India) NA NA 40% Govt of India Vision – Buses (Urban Transportation in India) NA NA 100% c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 Source: Mc. Kinsey, Moody's, Bloomberg, Bernstein, Niti Ayog Analysis 2

Technology Axis Towards Sustainability – A Complex Picture OEMs continue to invest in these technologies Renewable/ Sustainable fuels Fossil fuels Gaseous Technology Liquid S Co o nti e nv el l Fu na l ue F e bl a ain ust DME Methanol Ethanol Battery Electric Hydrogen (Fuel Cell) Hydro-electric/Wind/Tidal/Solar Bio-CNG Biodiesel ce Bifuel/Dual fuel CNG & LPG ilit P y– al ric t c e b Mo ar el all en ist ex El Diesel / Gasoline <10 350 pm p el, <50 2500 fu n i 5000 ur h 10000 lp Hybrids Towards carbon free fuel Su c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 3

Assessment of Regulated Pollutants for Various Fuels q Every fuel coupled with its own engine technology has its own emission profile q Alternate fuels are characterized by low CO 2 and PM emissions Fuel NOx CO CO 2 HC PM Base n/a ↑↑ ↓↓↓↓ ↓↓ Base LPG Same as base ↓↓ ↓ ↓ ≈0 Natural gas Same as base ↓↓ ↓↓ Same as base ≈0 Methanol ↓↓ ↓ ↓ Same as base ≈0 Ethanol (100%) ↓↓↓ ↓↓ ↓↓ Same as base ≈0 Biodiesel ↑↑↑ ↓↓↓ ↓ ↓↓ Same as base Hydrogen ↓↓↓↓ ≈0 0 DME ↓↓↓↓ n/a Very low n/a Gasoline Diesel Source: “Automotive fuels for the future” by International Energy Agency c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 4

Need to build a scale for widespread Alternate Fuel availability Niche status poses challenge for investment by OEMs q CNG, Bio-CNG and LNG § Will continue to play a significant role § § Vehicles complying with BS 6 norms will be available from April 2020 Current CNG vehicle penetration is less than 2% due to slow growth in CNG infrastructure. Need to build growth momentum q Ethanol and Bio-diesel § 10% blending for ethanol was mandated in 2013, but nation wide achievement is 2. 3%. § 7% blend for biofuels is acceptable for new diesel engines Nation wide achievement is 0. 001% so far. § Availability and infrastructure pan India has been key challenge q Methanol & DME § Experimental stage c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 5

Significant Investments in Electric Mobility Tigor EV : EESL Order Tiago EV Magic EV 9 M EV : Govt order, 6 Cities EVision Concept EV Diesel Hybrid Bus : MMRDA Order Iris EV 12 m Urban Electric Bus Zero Emission, India’s 1 st Fuel Cell Bus c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 6

Summary and Recommendations q ICE with liquid fuels – Need to focus on continuous improvements q Gaseous Fuels – To co-exist. Success depends on widespread availability q Renewable Fuels – Niche and needs a clear road map for OEMs to commit investment q Hybrids – CAFÉ norms will force their introduction, beside market pressure. No separate incentivisation needed q BEVs – Need to ride on EV wave. Incentives, localisation, demand creation, charging infra and eco-system will be important. FAME 2 will play a crucial role q Fuel cell EVs – Will make sense in certain segments of vehicles, and is a path to Hydrogen economy Affordability – A key to success c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 7

Thank You c Copyright, Confidential, Tata Motors Limited MOVE: A Global Mobility Summit : 7 th Sep 2018 8