Electric car companies roll out consumer schemes to keep sales in fast lane

The EV subsidiary of the Tata Group automotive flagship, Tata Passenger Electric Mobility (TPEM), will firm up the EV channel strategy - including design, location and the number of outlets - within the first quarter of FY24 and the showrooms will be up and running over the next six-12 months, multiple people aware of the company's plans told ET.

Tata Motors currently leads the pack with about 80,000 electric cars sold, followed by MG Motor India at over 10,000, another 2,000 by luxury players.

Five years back, electric vehicles used to sell just 90 units a month. Today these sell 8,500 to 9,500 units a month, which is like 100 times more...five years back the industry had sold about 2,000 cars and we are talking about already an annualised run rate this year of more than one lakh units so it's a 50 times growth, Tata Motors Passenger Vehicles Managing Director Shailesh Chandra told reporters.

The profitability for its dealers comes on the back of a consistent yearon-year volume increase; car and SUV volumes at the Mumbai-based firm have seen a more than 2.3x jump in the last decade. Tata Motors passenger vehicles sales soared to 538,640 units in FY23 from 229,325 units in FY13.

The Punch has been a game changer both for us and the industry, and now new players are entering this segment of micro SUVs. The Punch has sold more than 200,000 units in just 20 months.

Tata Motors plans to increase prices for both internal combustion engine and electric models by an average of 0.6% from July 17, citing the impact of past input cost fluctuations. Customers who book vehicles before July 16 and receive deliveries by July 31 will be exempt from the price hike.

Kerala's surprising surge in demand for electric vehicles has left automakers puzzled. Despite representing only about 4% of India's total passenger vehicle sales, Kerala ranks second in electric car adoption, closely behind Maharashtra. Factors such as heightened consumer awareness, reduced operational costs, and improved charging infrastructure have propelled sales in states like Kerala, Karnataka, and Gujarat.

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Unlike rivals which introduced new models in last two years that drove sales, Tata Motors relied on introduction of new powertrains like CNG and electric, and special edition models. The Punch small SUV, launched in August 2021, was the last brand to be added to PV portfolio. Even mid-cycle model refreshes kicked in only at the fag end of the year with the facelifts of the Nexon, Nexon.ev, Harrier and Safari. The new Nexon and Nexon.ev, launched recently have got combined bookings in excess of 100,000 units - 85,000 for the fossil fuel version and rest for the electrified one, said Chandra.

To jumpstart sales, the central government launched the “Green Cars Going Rural” sales campaign on June 15, where auto companies and local governments will promote 69 electric and plug-in hybrid models through live streaming and offline showcases.