According to the general director of Tata Motors, the company is testing its electric vehicles in select worldwide regions where it may look into a prospective launch if the experiment is successful. India is home to the largest electric manufacturer in the world, Tata Motors (TAMO.NS).
Shailesh Chandra stated in an interview that the tests are still in the preliminary phases. Depending on how well the automobiles perform, Tata may need to modify the product before it can finalize and design a “go to market” strategy.
“It comes down to which markets I ought to be in, what items I should be selling, and what kind of distribution plan I should use. He explained that we are researching various areas, testing our vehicles, and conversing with potential commercial partners.
According to Chandra, it was too soon to discuss the specifics of the export markets, and he promised that there would be greater clarity next year.
According to Chandra, Tata also intends to roll up new auto dealerships over the coming quarters in some Indian cities that would only sell electric vehicles (EVs). This comes as sales of the company’s clean cars gain momentum and as the company prepares for speedier launches of new electric models.
As a result of more stringent pollution rules, automakers are being pressured to raise the proportion of electric vehicles in their product portfolios, which has led to an increase in global sales of electric vehicles (EVs). Even though Tesla (TSLA.O) continues to lead in the electric vehicle race, Chinese competitors such as BYD (002594. SZ) are closing the gap with new factories and aggressive exports.
Tata Motors, which already sells three electric vehicle models, presented its fourth electric car on Thursday in New Delhi. It is a new version of their Nexon electric SUV, with a starting price of 1.5 million rupees ($18,000). The vehicle can be driven for 465 kilometers (289 miles) on a single charge.
The electric vehicle manufacturer has more than an 80% share in India’s electric car market, which is a very small but expanding sector, and in which it competes with MG Motor of China and Mahindra & Mahindra (MAHM.NS), an Indian company. In addition, Tesla is considering opening a factory in India, producing a car priced at $24,000, and is already negotiating with the Indian government.
The government of India has set a goal to increase the percentage of electric vehicle sales to thirty percent by the year 2030. During the previous fiscal year, there were 3.9 million total car sales in India.
The automobile manufacturer with headquarters in Mumbai has stated that it intends to have ten electric vehicles (EVs) in its lineup over the next three to four years, to have EVs account for twenty-five percent of the company’s total car sales by 2025. According to Chandra, the company is well on its way to achieving its goals, including selling around 100,000 electric vehicles in the current fiscal year.
Chandra stated that increasing sales and introducing the new Nexon EV have served as the impetus for the company’s goal to create dealerships that only sell EVs.
“It is not going to be a rollout that is implemented across the entirety of India; rather, it will be implemented in stages. Chandra said, “We want to understand fully the implication of an exclusive outlet in comparison to what we were selling with the existing outlets.”
Tata has a dealership network that spans the entirety of the country and offers its gasoline and diesel vehicles and its electric vehicles at this time. According to Chandra, the rollout of new EV outlets would occur in large and small cities based on the company’s existing network of dealerships.
According to Chandra, the capacity of Tata to increase production of its electric vehicles and launch new electric car models at a faster rate would assist the company’s plan for new dealerships. These dealerships will now be able to offer a broader portfolio of products, which will make them more financially feasible.
“Back then, the bigger problem was our lack of assessment of demand… today, we are very well prepared to deal with a faster ramp up,” he added. “We are very well prepared to deal with a faster ramp up.”
