Tata Motors is looking to extend its reach beyond its domestic market. The company is currently conducting trials of its electric vehicles (EVs) in specific international markets. If these trials prove successful, there is a strong likelihood of Tata Motors launching its electric cars in these countries. This announcement comes directly from Shailesh Chandra, who serves as the Managing Director of Tata Motors.
Tata to Launch EV-Only Dealerships in India
The testing phase for Tata Motors’ electric vehicles (EVs) is still in its early stages, and the company is closely monitoring the EVs’ performance. Depending on the outcomes of these trials, Tata may need to make adjustments to its products before finalizing its market entry strategy. According to Chandra, the Managing Director of Tata Motors, “It is about which markets I should be in, with what products and with what kind of distribution strategy. We are assessing some markets, running our cars, discussing with business partners.” While specific details about potential export markets are not yet disclosed, Chandra hinted that more information about Tata Motors’ global expansion plans would likely be revealed next year.
Additionally, Tata Motors is preparing for further growth within India. The company intends to establish new car dealerships dedicated exclusively to EVs in select Indian cities. This decision aligns with the increasing demand for electric vehicles in India and Tata’s plans to introduce a range of new electric models. Globally, electric vehicle sales are on the rise due to stricter emissions regulations, which are prompting automakers to invest more in electric car production. While Tesla continues to dominate the electric vehicle market, Chinese manufacturers like BYD are gaining ground by establishing new factories and implementing aggressive export strategies.
Tata Motors Enjoys 80% Share in Electric Car Market
Tata Motors, which already offers three electric vehicle models, recently introduced its fourth electric car in New Delhi: an updated version of the Nexon electric SUV. With a starting price of approximately 15 lakh rupees, the new Nexon EV impressively boasts a range of 465 kilometers (289 miles) on a single charge. Currently, Tata Motors holds a dominant position in India’s electric car market, with more than 80% of the market share. However, it faces competition from other players like MG Motor and Mahindra & Mahindra. Meanwhile, Tesla is also eyeing the Indian market and is in discussions with the government regarding local production of a $24,000 electric car.
Despite electric vehicle sales in India accounting for just around 2% of total car sales last fiscal year, the Indian government has ambitious plans to increase this share to 30% by 2030. Tata Motors is fully committed to playing a substantial role in achieving this goal, with plans to expand its portfolio to include 10 electric cars within the next 3-4 years. The company aims for electric vehicles to make up 25% of its total car sales by 2025. In light of growing demand and expansion plans, Tata Motors has decided to launch exclusive electric vehicle dealerships. However, this expansion will be gradual rather than a nationwide rollout. Tata will carefully evaluate the implications of standalone outlets versus selling electric vehicles through its existing network of dealerships. With increasing demand and ambitious growth strategies, Tata Motors appears poised to have a significant impact on India’s electric vehicle landscape.