Tata's Shift to Gadgetizing EVs in PV Portfolio

author: FutureCar Staff    

Tata Motors, the leading electric passenger vehicle company in India, is taking steps to revamp its passenger vehicle line-up, including electric vehicles (EVs), in order to stay competitive in a market where automakers are offering more choices for younger, aspirational Indian buyers.

As the company increases its EV production, it can also localize further and improve cost structures. Tata Motors has recently relaunched the Nexon, India's largest selling electric car, as well as its IC-engine version. The starting prices for these vehicles are ₹14.74 lakh and ₹8.09 lakh ex-showroom, respectively. The Nexon sells around 14,000-15,000 units per month, making it one of the most popular SUVs in the country.

Tata Motors has also established a new identity, Tata.ev, to create dedicated EV storefronts and implement a distinct marketing strategy for electric vehicles. The company plans to gradually transition towards exclusive EV-only retail outlets, starting with cities where the market penetration is sufficient to make the model viable. This transition will be done in a phased approach, with a few stores initially, to learn the implications before progressing further. The new retail outlets will be introduced over the next few quarters.

According to Shailesh Chandra, the managing director of Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles, the company's goal is to eventually separate the EV and internal combustion engine (ICE) vehicles. This is because Tata Motors will have a portfolio of 10 electric vehicles in the future, which will require a separate retail strategy. Chandra believes that the customers for EVs and ICE vehicles are different, with EV customers seeking a seamless, connected experience and considering their car as part of their gadget universe.

Currently, EVs account for 13-15% of Tata Motors' passenger vehicle sales and contribute to 18-20% of its revenue. The company sells approximately 6,500 EV units per month. While both the EV and ICE versions of the Nexon are receiving significant upgrades, the EV version will showcase a more futuristic design and incorporate additional advanced features. Tata Motors also plans to launch mid-cycle refreshes of the Harrier and Safari SUVs.

The Harrier SUV, which competes with Mahindra's XUV700, is currently only available in a diesel version. Chandra stated that diesel is the most popular choice in this segment, with Tata Motors selling around 4,500 units of the Harrier and Safari per month. The demand for these vehicles has remained consistent, although production was temporarily reduced to accommodate the demand for other models. Chandra also mentioned that the entire portfolio, starting with the Nexon, will go through lifecycle interventions to stay competitive.

In addition, Tata Motors is setting up a manufacturing unit for the 1.5 litre GDI petrol engine for the Harrier and Safari. While petrol variants will be introduced in the future, mid-cycle enhancements cannot wait for that long.

FutureCar Staff