Tata Motors To Set up Separate Sales Network for EVs

In order to provide a unique experience to customers choosing the environmentally friendly models, Tata Motors plans to establish a separate sales network for its electric passenger vehicles in the current fiscal year, according to a top company official.

The Mumbai-based auto giant said it will begin experimenting with new outlets in some of the cities where EV volumes have increased. On Thursday, the company unveiled completely new versions of its Nexon EV and Nexon (internal combustion engine).

“We’ll have to separate them (sales outlets for EVs and ICE)  given that we have different requirements of customers and also a growing portfolio (of EVs)” Tata Motors Passenger Vehicles Managing Director Shailesh Chandra told PTI in an interaction.

He said the company would look at places where it would be viable to have exclusive outlets for the EV range. “We need to separate outlets because there would not be enough space to keep both EVs, ICE models at the same place..So there’s a practical difficulty… we will not be able to do justice to both. So you will start seeing exclusive outlets starting slowly from the coming quarters,” Chandra stated.

Tata Motors’ current EV portfolio comprises the flagship SUV Nexon EV range, Tiago EV, Tigor EV and the XPRES-T EV. When asked about the locations where the exclusive outlets would come up, Chandra said: “We’ll start with pilot cities. I can’t disclose the locations right now. But as I said that within this financial year, we’ll start with some experiment.” The company recently introduced the new retail identity for its unit Tata Passenger Electric Mobility. Tata Motors utilises the shop-in-shop concept in its existing dealerships to retail EV models.

Chandra said the demand for EVs is witnessing an upward trend and for Tata Motors, the EV range accounts for 13-15% of the company’s overall sales. “Revenue wise it will be 18-20% as of quarter one. Next three to four years I would imagine this to go up to 25%,” he added.

By 2030, Tata Motors anticipates selling half of its passenger vehicles as electric vehicles, according to Chandra. The cost of the new Nexon.ev ranges from Rs 14.74 to Rs 19.94 lakh (ex-showroom). The maximum range on a single charge is 465 kilometers. The model has a charging port for other compatible EVs and a power outlet for external devices like power tools, consumer electronics, and camping gear. 

Chandra stated that EV customers constitute a unique community that is fast growing and distinguished by their evolved choices and hunger for next-gen technology. “The Nexon.ev aptly fulfils their evolving, astute preferences with a technologically advanced, on-the-move solution that seamlessly blends with their contemporary way of life,” he added. 

The company also introduced the Nexon with petrol and diesel engines with introductory prices starting from Rs 8.09 lakh (ex-showroom). Chandra said the compact SUV segment, in which Nexon competes with the likes of Maruti Brezza, Hyundai Venue, Kia Sonet, has grown very steeply over the years. “When we had launched Nexon in 2017, this segment used to see sales of 30,000 units a month, today it has grown to 90,000 units a month,” he noted.

This is the most intensely fought segment as well with all the leading players having a product in the market, Chandra said. Tata Motors has sold 5.5 lakh units of Nexon so far in the country. “We are confident that this new avatar of the Nexon will appeal to a wider audience of customers, cement its position as India’s best selling SUV and further enrich its legacy,” Chandra stated. The new generation Nexon comes with six airbags as standard fitment among other features.