Tata Motors, India's leading automobile manufacturer, is likely to be the first traditional carmaker to have a separate sales channel for electric vehicles (EVs), the Economic Times reported on March 24.
Tata Passenger Electric Mobility (TPEM), the EV subsidiary of the Tata Group automotive flagship will enhance the EV channel strategy - including design, location and the number of outlets - within the first quarter of FY24 and the showrooms, too will be up and running in the next 6-12 months, the report said.
Moneycontrol couldn't independently verify the report.
According to the report, initially, the company may look to set up 10 outlets in top 10 tier-2 cities. The automobile company said that it is considering dealership formats that go 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," a Tata Motors spokesperson told ET.
From April 2023, 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 is said to be in place for the intervening period until the separate sales channels become operational, the report further said.
Dealers will also be required to have separate inventory funding for both the businesses. The separate channel move is acting as a precursor to the automobile company's target of doubling its e-PVs (passenger vehicles) to 1,00,000-1,10,000 in FY24. It is likely to end FY23 with sales in excess of 50,000 units, the report added.
The first such showroom is likely to come up in Delhi NCR. "These will be large format, plush-looking showrooms mostly in tier-2 cities, a shade better than Maruti's Nexa outlets," a person familiar with the matter said.
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