Tata Motors to open exclusive EV sales network this fiscal year

The Mumbai-based auto major introduced all-new versions of its Nexon EV and Nexon

Tata Motors is gearing up to establish an exclusive sales network for its electric passenger vehicles in the current fiscal year.

The objective is to provide a distinct and tailored experience for customers choosing eco-friendly models, as confirmed by a senior company executive.

The Mumbai-headquartered automobile giant, which recently unveiled updated editions of its Nexon EV and Nexon (internal combustion engine), also revealed plans to initiate trial runs of new outlets in select cities where electric vehicle demand has surged.

Watch | Drive Report: Tata Nexon Facelift Review: The Most advanced sub-4 metre SUV?

"We'll have to separate them (sales outlets for EVs and ICE) given that we have different requirements of customers and also a growing portfolio (of EVs)," Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said.

Tata Nexon launched - Here’s all you need to know about it

Tata Motors is set to invest approximately $2 billion in battery-powered vehicles by 2027, while simultaneously bolstering its domestic electric vehicle supply chain by building a battery manufacturing facility in Gujarat.

The company anticipates a further decline in diesel car sales with the impending introduction of Bharat Stage 7 emissions regulations.

“We felt the need to create a different brand philosophy and personality for EVs. We will start going for exclusive EV dealerships in the coming quarters," Shailesh Chandra said.

In Pics: Tata Motors releases Nexon facelift priced at Rs 8.1 lakh

Tesla leads EV race, but Chinese competitors gain ground

Sales of EVs globally have been growing as tighter emission regulations push carmakers to increase the share of electric cars in their portfolio. While Tesla still leads the EV race, Chinese rivals like BYD are catching up with new factories and aggressive exports.

Tata Motors dominates India's growing EV market

Tata Motors has a more than 80 percent share of India's electric car market, which is small but growing, and where it competes with China's MG Motor and home-grown Mahindra & Mahindra. Tesla is also eyeing an India factory and is in talks with the government to build a $24,000 car.

Electric models made up about 2 percent of total car sales in India of 3.9 million last fiscal year and the government wants to grow this to 30 percent by 2030.

The Mumbai-based automaker has said it plans to have 10 electric cars in its portfolio over the next 3-4 years with EVs making up 25 percent of its total car sales by 2025. Chandra said the company is on track to meet its targets, including plans to sell around 100,000 EVs in the current fiscal year.

(With Agency inputs)