Tata Motors steps up EV play, plans exclusive outlets – ET Auto

The company may look to set up 10 outlets in top 10 tier-2 cities. Tata Motors, which retails five out of every six electric powertrain cars sold in India.

Tata Motors, India’s biggest retailer of electric vehicles (EV), will likely be the first traditional carmaker in the country to have a separate sales channel for EVs, reflecting increasing consumer preference for this powertrain that saw industry-wide sales more than triple in 2022.

The EV subsidiary of the Tata Group automotive flagship, Tata Passenger Electric Mobility (TPEM), will firm up the EV channel strategy – including design, location and the number of outlets – within the first quarter of FY24 and the showrooms will be up and running over the next six-12 months, multiple people aware of the company’s plans told ET.

Initially, the company may look to set up 10 outlets in top 10 tier-2 cities. Tata Motors, which retails five out of every six electric powertrain cars sold in India, confirmed that it is considering dealership formats that are in kilter with its leadership credentials in the EV segment, but the company declined to share further details.

“We are seeing good growth in EVs and are actively considering dealership formats. More details will be shared at an opportune time,” said a Tata Motors spokesperson. From April, Tata Motors dealers will commence billing of EV and ICE (internal combustion engine) models to separate companies – ICE models to Tata Passenger Vehicles, and the EV models to TPEM.

The arrangement will be in place for the intervening period until the separate sales channels become operational. Dealers will also be required to have separate inventory funding for both the businesses. The move to set up a separate channel is a precursor to the company’s target of doubling its e-PVs to 100,000-110,000 in fiscal FY24. It is likely to end FY23 with sales in excess of 50,000 units.

This also comes ahead of the launch of more EV offerings – electrified versions of the existing and second-generation models. These will include heavily modified versions of existing platform models and new electric models over the next couple of years.

The first such dedicated showroom is likely to come up in the NCR. “These will be large format, plush-looking showrooms mostly in tier-2 cities, a shade better than Maruti‘s Nexa outlets,” said a person privy to the plans. On average, the cost of setting up a 6-7,000-square feet showrooms in a satellite city is between INR 95 lakh and a INR 1 crore, as per dealer estimates.

Dealer principals shortlisted by company have signed a rental/lease agreement with property owners and will begin the construction of the showroom in one month once it gets design and layout specification from Tata Motors.

  • Published On Mar 24, 2023 at 10:19 AM IST

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