Tata Motors is testing its electric vehicles in global markets where it could look at a potential launch if the experiment succeeds, as per its managing director. These tests are in early stages and based on how the cars perform but Tata may need to make some changes to the product before it can finalise and develop a “go to market” strategy, Shailesh Chandra said.
Shailesh Chandra said :
“It is about which markets I should be in, with what products and with what kind of distribution strategy. We are assessing some markets, running our cars, discussing with business partners,”.
He said it was too early to discuss details of the export markets and there would be more clarity in 2024.
Tata also plans to roll out new car dealerships over coming quarters in some Indian cities that will exclusively sell EVs as sales of its clean cars gain momentum and it lines up faster launches of new electric models, Shailesh Chandra said.
Sales of EVs globally have growing as tighter emission regulations push carmakers to increase the share of electric cars in their portfolio.
As Tesla still leads the EV race, Chinese rivals BYD are catching up with new factories and aggressive exports.
Tata Motors launch its fourth electric car in New Delhi, a new version of its Nexon electric SUV at a starting price of Rs. 1.5 million, which can be driven for 465 kilometres on a single charge.
The Tata EV maker has a more than 80% share of India’s electric car market, which is small but growing, and where it competes with China’s MG Motor and home-grown Mahindra & Mahindra.
Tesla is also eyeing an India factory and is in talks with the government to build a $24,000 (approx. Rs. 20 lakh) car.
Electric models made up about 2% of total car sales in India of 3.9 million last FY and the government wants to grow this to 30% by 2030.
Tata has said it plans to have 10 electric cars in its portfolio over the next 3-4 years with EVs making up 25% of its total car sales by 2025.
Shailesh Chandra said the company is on track to meet its targets, including plans to sell around 1,00,000 EVs in the current FY.
Growing sales and the new Tata Nexon EV have become the catalyst for its plan to launch EV-only dealerships, Shailesh Chandra said.
Shailesh Chandra said :
“It is not going to be a pan-India roll out, it is going to be a progressive roll out. We want to understand fully the implication of an exclusive outlet versus what we were selling with the existing outlets,”.
Tata has a country-wide dealership network for its gasoline and diesel cars through which it currently also sells its EVs.
Shailesh Chandra said the roll out of new EV outlets would be in small and big cities, depending on its current network of dealerships.
Tata’s ability to ramp up production of its EVs and launch new electric car models at a faster pace will also support its plan for new dealerships, which can now offer a broader portfolio, making them more viable, Shailesh Chandra said.
Shailesh Chandra said :
“Earlier, the bigger problem was our lack of assessment of demand but today we are very well prepare to deal with a faster ramp up,”.
