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Tata Motors Saprate EV Showrooms
In a move that reflects the increasing demand for electric vehicles (EVs) in India, Tata Motors, the country’s largest electric vehicle manufacturer, is set to become the first traditional carmaker in India to have separate sales showrooms for EVs. This development comes after industry-wide sales of EVs more than tripled in 2022, driven by growing consumer preference for this powertrain.
According to an Economic Times report, the EV subsidiary of the Tata Group automotive flagship, Tata Passenger Electric Mobility (TPEM), is currently finalizing its strategy for the new sales channel, including design, location, and the number of outlets. According to sources familiar with the matter, the company aims to have the showrooms up and running over the next six to 12 months, with an initial plan to set up 10 outlets in the top 10 tier-2 cities.
Tata Motors in Indian EV Market
Tata Motors currently retails five out of every six electric powertrain cars sold in India, making it a dominant player in this space. The company has confirmed that it is considering dealership formats that are in line with its leadership credentials in the EV segment, but it declined to share further details.
Future Plans & Portfolio
This move to set up a separate sales channel for EVs is seen as a precursor to the company’s target of doubling its e-PVs to 100,000-110,000 in fiscal FY24. The company is likely to end FY23 with sales of over 50,000 units. To achieve this target, Tata Motors is taking steps to strengthen its presence in the EV market, and the separate sales channel is a crucial part of this strategy.
The cost of setting up a 6-7,000-square feet showroom in a satellite city is estimated to be between ₹95 lacks and ₹1 crore, according to dealer estimates. The dealer principals shortlisted by the company have already signed rental/lease agreements with property owners, and construction of the showrooms will begin in a month once the company provides design and layout specifications.
Future of EVs in India
The move by Tata Motors to set up a separate sales channel for EVs is a significant development for the EV market in India. As more and more consumers switch to electric vehicles, carmakers will need to adapt to this changing market dynamic to remain competitive. By taking the lead in establishing a dedicated sales channel for EVs, Tata Motors is positioning itself as a leader in this rapidly growing market segment.
Overall, this announcement by Tata Motors is a testament to the company’s commitment to driving the transition to electric mobility in India. With the new sales channel set to be operational in the next few months, consumers can expect a more streamlined and efficient buying experience for EVs, further boosting the demand for these vehicles in the country.