To meet the demand for EVs from smaller cities, Tata Motors is expanding its sales infrastructure

7 Aug 2023 , 12:41 PM

According to news reports, Tata Motors is seeking to boost the number of its sales locations in Tier II and Tier III cities in order to meet the growing demand for its electric model line in these areas. The company, which sold over 19,000 electric car units at the end of the first quarter, is also aiming to develop a unique sales infrastructure for its electric vehicle portfolio going forward.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles, stated during an analyst call that EV usage is now expanding outside of the top 20 cities in the nation.

‘With the bias currently expanding to different regions of the country…that’s an encouraging indication in terms of how the EV sales will continue to rise from here,’ he claimed.

According to Chandra, there has been a change in the micro markets since the introduction of Tiago EV.

In addition, he pointed out that outside of the top 20 cities, sales of the Tiago EV already account for more than 49% of total sales.

And so, using the shop-in-shop model, we’ve seized the chance to really begin building out our network in those smaller areas. As we grow in these places, we also develop the infrastructure for the service capabilities and educate the service engineers who will work at those service stations. Thus, that is likewise a continuing process, according to Chandra.

‘Cell costs are returning to their pre-H1 levels, and effects should start to be felt as early as this quarter…PLI will significantly increase the margin, and we are convinced that we are meeting all eligibility conditions established by the ministry (of heavy industries), Chandra stated.

According to him, the company has been working on localization for the past two years, and doing so will result in significant cost savings.

There are new generation aggregates that will also be available in this fiscal year and are priced much more affordably. Therefore, I have every confidence that the forecast for the EV business will be quite positive over the medium term, specifically this year, given the combination of all of these elements, Chandra added.

This year, the business hopes to sell about 1 lakh EVs.

For feedback and suggestions, write to us at [e-mail]