Tata Motors Ltd is doubling down on its electric vehicle (EV) ambitions with the rollout of Tata.ev showrooms designed to offer an improved experience for customers, even as the EV market has hit a speed bump. These dedicated retail outlets, initially launched in six locations – two each in Gurgaon and Kochi and one each in Thrissur and Kannur, are designed to address the specific needs of electric vehicle buyers in a crowded market.
Despite a slowdown in the EV market, the country's largest electric carmarker will continue to ramp up the Tata.ev showrooms in phases and is banking on the outlets to boost sales of battery-powered vehicles. According to sources, the company will be establishing an EV-specific showroom each in New Delhi, Mumbai, Bangalore, Hyderabad and Pune in the medium term.
“The Tata.ev showrooms have been designed keeping in mind the specific needs of EV customers. We have added many elements in the store that would support us in addressing customer queries end to end, helping pass on learning and understanding of the EV technology, thereby enabling faster EV adoption,” stated Vivek Srivatsa, chief commercial officer of Tata Passenger Electric Mobility, the Electric Passenger Vehicle arm of Tata Motors.
While the company’s franchisee partners started retailing the electric variants of Punch, Tiago, Tigor and Nexon at its EV outlets, it recently accommodated Currv EV (also available in the ICE version) since November.
Srivatsa said this new retail strategy is allowing the company to make the EV purchase as a “high involvement” process. “It is the beginning of a relationship where, throughout the customer ownership cycle, we will be in touch with them. The focus here is more on the overall experience, and higher conversions are just an outcome of the same,” Srivatsa said.
His comments come at a time when Tata Motors’ EV sales have been declining. Last month, the company sold 5,355 units of electric vehicles (including international business) compared with 5,465 in October 2023. Furthermore, its EV retail market share fell from 74 percent in October 2023 to 58 percent in October 2024, according to the data provided by the Federation of Automobile Dealers Associations (FADA).
As per the data available on the Vahan website, 73,269 units of EVs were sold last year and around 78,308 units registered this year (YTD). Tata Motors registered 51,591 units of EVs last year and 50,047 units this year, according to Vahan data.
Mixed views by analysts
Puneet Gupta, Director (India & ASEAN Markets), Sales & Powertrain forecast, S&P Global, said Tata.ev is a strategic step towards future mobility and running dedicated EV-focused channels will enable car manufacturers to address those forward-looking customers more as compared to traditional ICE buyers.
In his view, “The EV market is still evolving with many uncertainties, necessitating prompt and decisive action and, especially as India approaches its inflection point in EV adoption.”
However, Avik Chattopadhyay, founder of brand consultancy firm Expereal and an auto industry expert, expressed scepticism about the effectiveness of this strategy. In his view, “Unless you have a new brand that demands a new experience, creating a new channel is not prudent. That is because it is the Tata brand that you want people to experience, so why should the experience differ irrespective of whether you explore a diesel or CNG or electric vehicle?”
According to Real estate consultant Anarock Group, starting an EV franchise involves making a substantial financial commitment upfront. Apart from the initial investment in store rental and franchise fees, they need to set up specific in-store infrastructure. It also believes that the timeframe for recovering the investment can range from two to three years in a favourable market.
“An EV franchise store will deliver revenue streams from EV sales and related products and services as the franchisees contribute to the EV company’s infrastructure growth and market reach. Handled well, such a store becomes a successful and very effective brand ambassador and can also function as a hub for boosting awareness and trust toward embracing EV technology,” said Prashant Thakur, Regional Director & Head - Research, Anarock Group.
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