Tata Motors has taken another significant step towards its EV narrative with the inauguration of two exclusive Tata.ev dealerships in Gurugram, Haryana. These stores will be open to the public from January 7.
The company currently has two exclusive Tata.ev dealerships. The company is keen to expand the presence to cover even the tier-I and tier-II cities in the next 12 to 18 months, according to Vivek Srivatsa, Head, Marketing, Sales and Service Strategy, Tata Passenger Electric Mobility Ltd. However, the expansion to cities would depend on the EV penetration of that particular city, he said.
“Our data shows that in a lot of these cities the penetration is expanding very fast. Wherever we see this penetration going up, we want to get into this kind of set-up, where we can do justice to the customer,” Srivatsa said. With the existing dealerships, the company will not be able to showcase all the EV products. To showcase its range of EVs and also provide the EV customers with a different experience, the company has taken the step of adding EV exclusive dealerships. The expectation is that in the clusters that start with exclusive EV retail outlets, the normal ICE dealers of that region will stop selling EVs there.
Moreover, Tata Motors is also strategically placing these new dealerships closer to the existing dealerships. “Definitely, we want to get into slightly emptier pockets. But at the same time, we have to be close to the market. So, it is a balance we have to strike,” he said.
Srivatsa said that the preference for these exclusive dealerships was being given to existing best performing Tata Motors dealers. However, the company was also open to welcome new dealers even with a different business background, he added.
A similar approach is being followed for sales executives. The sales executives for these new EV dealerships had to undergo special training. he said.
With these new dealerships, the company believes that it is more about lifestyle since for EV customers, lifestyle and community activity matters a lot. Hence, sales executives from diverse backgrounds such as sports, fashion and jewellery have been onboarde for these new dealerships.
Pillars For New Dealerships
These new dealerships would have a very different approach as compared to traditional Tata Motors showrooms, said Srivatsa. To begin with, these new showrooms would be spread across 6,000 to 8000 square metre. A few dealer principals were also looking at a 10,000 – 12,000 square metre real estate. This was to accommodate not just the vehicles but also the additional features of these EV exclusive dealerships, he said.
All the showrooms try to convey a strong commitment to sustainability right from its design to the eventual construction and day-to-day operations. All major materials utilised are either recycled or recyclable, with many of them certified with sustainability from global green certifiers. There was an added emphasis on locally-sourced materials while building the showroom, significantly reducing reliance on long-distance and high-emission transportation.
The second focal point of this showroom is community, as this space has been created to invite visitors not just to purchase a Tata EV but also for shared moments like offering coffee from Blue Tokai, catch-up with fellow EV adopters, and attending events listed in the EVOLVE community calendar – transforming the store to a hub for meaningful interactions beyond a purchase.
The third pillar in this design centres on technology. Thoughtfully integrating digital elements, the store crucially aims to support and not overwhelm its visitors. The screens would provide testimonials from current owners, addressing concerns and myths around EVs, customization options for customers keen to know more about their Tata EVs and personalized welcomes for families arriving to receive the delivery of their EVs.
Growing The EV Base
Tata Motors has been the pioneer in the EV space since its Nexon EV was announced in 2019. As things stand now, the company currently enjoys a market share of 75% in the space, which is lower than what it was a year earlier.
Srivatsa said that such high market share was bound to go down as the market matured. He said that the company would rather have a smaller market share but sell more volumes in a larger category. However, he said that TPEM was the only player in the space pushing EVS and, hence, the growth in the segment was low.
As for TPEM, the company has planned out an aggressive growth plan for its EV portfolio starting from the likes of Curvv, Harrier.ev, Sierra.ev, among others. However with all these launches, the company doesn’t except next year to be the best year for EVs.
“We will enter next year with a relatively lower order book and higher network stock and lower new launches in the ICE space. So, I won't be surprised if the market remains flat overall as an auto industry but I anticipate EVs to grow because there'll be a lot of new launches. These will open up new segments and new price points. So EVs will grow,” Srivatsa said.
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