Tata Motors (NYSE:TTM) Ltd, the dominant player in India's electric vehicle (EV) market with an 80% segment share, is considering the launch of dedicated retail outlets for its EVs, according to Shailesh Chandra, managing director of Tata Passenger Electric Mobility. The company's plan comes amid efforts to expand its lead in the rapidly growing EV segment. The rollout of new EV-only outlets will start in the coming quarters and will be established in both small and large cities based on its current network of dealerships.
This move is a part of the company's broader strategy to create a distinct brand philosophy and personality for its EVs. The company also launched the TATA.ev brand in August 2023, under which it plans to set up a handful of retail stores for electric models. "We need to separate outlets because there would not be enough space to keep both EVs, ICE (NYSE:ICE) models at the same place…So there's a practical difficulty... we will not be able to do justice to both," Chandra explained.
The decision comes as Tata Motors experiences an upward trend in demand for its EVs, which currently account for 13-15% of the company's overall sales and 18-20% of its revenue as of Q1. Chandra predicts this figure could rise to 25% within the next three to four years.
In addition to domestic expansion plans, Tata Motors is also exploring the idea of exporting its electric vehicles to foreign markets. While specific markets were not disclosed, this indicates a broadening international strategy for the automaker.
Tata Motors currently sells its EVs through its existing pan-India presence for internal combustion engine (ICE) passenger vehicles. Its current EV portfolio comprises the flagship SUV Nexon EV range, Tiago EV, Tigor EV, and the XPRES-T EV. The company aims to have 10 EV models in its lineup in the next 2-3 years.
On Thursday, Tata Motors launched the facelift of Nexon EV, priced between '14.74-19.94 lakh (ex-showroom). The new Nexon EV offers a maximum range of 465 km on a single charge and includes new features such as vehicle-to-vehicle charging and vehicle-to-load technology.
The automaker is also strengthening its local supply chain by building a battery factory in Gujarat that will have an output of 20 gigawatt hours. This move is in line with the Indian government's push for cleaner transportation. Tata Motors plans to invest around $2 billion in battery models by 2027. Other companies planning to make lithium-ion cells in India include Ola Electric Mobility Pvt and Reliance Industries Ltd.
Meanwhile, Chandra stated that diesel model sales will likely decrease further when the Bharat Stage 7 emissions rule is introduced, highlighting the company's commitment to adapting to evolving regulations.
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