Tata Motor’s EV Future, Production, Pricing and more

Tata Motors recently launched the Tiago EV in the Indian market. On the occasion our Editor and Lead, Kranti Sambhav had the opportunity to interview Shailesh Chandra, MD Tata Motors Passenger Vehicle & Tata Passenger Electric Mobility Limited. Here is a transcription of that video.

Kranti: In the Indian car market in the electric car segment there is a new entry which was being awaited for a really long time. The anticipation for thai has been really high because everyone was wondering when will we get a sub-10 Lakh EV? It is almost here the car has been introduced and deliveries will begin in January 2023.

Kranti: Firstly we would like know that you have launched the car and have taken 3 months time for the launch, what is your production plan and specific reason for this?

Shailesh: We wanted to bring the car 3 months before the deliveries start because we wanted to bring a car which is a compelling value proposition, its a feature rich EV at a reasonable price. We also intend to check what sort of demand it generates. So that if we need to adjust the production plan we should have the time to adjust to it. The period of next three months are a demand discovery phase for us in this we will get to know the sizing, interest and sustainability of the product. That is the reason we have presented this car with its pricing three months before the delivery phase. We did gather data based on the Tigor EV and Nexon EV but we never know if the market response to a product is bearish or bullish.

Kranti: So based on the findings of your research how are you looking at this product? Because most commonly we are witnessing that whichever new products come into the market that are loaded with features and technology or we can say vehicles that have potential, they rack up high waiting periods as soon as they are introduced. So whats your outlook towards this?

Shailesh: First, If we take the example of Nexon EV or Tigor EV in that market the penetration of EVs is as high as 20 to 25 percent. The Tiago EV is a very compelling proposition so we are assuming that it should have a higher penetration level compared to its siblings. Second we were currently operational in 90 cities but the Tiago has a market in smaller cities as well, so we are taking this product to 170 cities. So we are expecting a 30-35 percent market penetration with the Tiago EV and that won’t be too far from the reality. But we could get a more positive surprise from the market we are open to that.

Kranti: Taking about small cities, I am sure you must have researched and must have findings of that as well. What is your outlook on that market, especially for a product like the Tiago EV. Till now we have seen a very metro centric phenomenon from the brand. The price range in which the Tiago EV is placed, we feel it will attract the audience from smaller cities as well. What are your readings?

Shailesh: I feel the cities where the electricity supply isn’t an issue which in today’s time isn’t much of an issue in most cities. There was a time when the load shedding was significant in many cities. When we selected these cities we kept in consideration the places where the state policies are supportive of EVs, like the states of Haryana, Odisha Chattisgarh etc. We are also getting traction from the northeastern states as well. A lot times we are surprised with the number of queries coming from a state that we had least anticipated. Places where the Tiago is selling well and EV policies are supportive. We feel this this penetration will increase slowly but will increase for sure. The states what will come up with policies that support EVs we will increase our presence there and places where these parameters aren’t met functioning in those areas might be a little tough. It's natural that places with supportive EV policies will have higher adoption of EVs.

Kranti: Do you feel there will be a cannibalisations of your ICE products from their EV versions?

Shailesh: Well, for the Nexon EV the response has been quite opposite. Since we launched the Nexon EV the sales of the Nexon’s petrol and diesel versions have increased. The introduction of an EV version increases the awareness about a product. We feel the cannibalisation will be very low.

Kranti: You seem very dedicated towards EVs but in future will you move towards hybrid powertrains as well?

Shailesh: We do not consider EVs and hybrids as an alternative for each other. The purpose of an EV and hybrid are completely different. Internationally everyone is moving towards EVs. Those who are invested in hybrid technology will continue to produce them but someone like us who aren’t invested in hybrid technology won’t invest in it as EVs are the ultimate way forward for mobility.

Kranti: You just broke the Rs 10 lakh barrier with the introduction of the Tigor EV, now will you introduce an EV which is positioned below this?

Shailesh: I can’t comment on this today because there is nothing as such that I have planned as of now, but if I plan something in this line I will definitely let you know.