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G BALACHANDAR Chennai, December 28 In one month, Tata Motors will be celebrating the first anniversary of the launch of its electric com- pact SUV Nexon in the Indian market. The journey of this ‘Made in India’ electric car will go down as one of the successful stories of Covid-19-battered 2020. Tata Nexon EV, formally intro- duced on January 28, 2020, has defied market trends with strong growth in sales despite the non- availability of what the industry called a major EV adoption seg- ment — the eet, which was crippled by the pandemic. Covid-19 and the resultant lockdown slammed the brakes on the evolving EV ecosystem, particularly the development of charging infrastructure. All key growth segments — public trans- port, mobility in cities and the eet segment — were impacted. But Tata’s Nexon EV managed to crack the market. Breaking barriers Despite losing the first quarter due to the lockdown , the in- dustry has sold about 3,000 elec- tric cars (2,959 units precisely) during the April-November 2020 period. This is without the eet segment, which repor- ted 80-85 per cent decline as it was un- derutilised. So, the entire growth was driven by the personal seg- ment, which was perceived as a slower adopter due to some bar- riers. Of the 2,959 units sold, 2,800 came from the personal segment, an increase of 2.5 times over the previous year (a low base period). The impressive part of the story is that of the total sales of 2,959 units, the Nexon EV accoun- ted for 2,086 units (2,200 units since the launch) — about 70 per cent of the total industry sales and 4- 4.5 times growth for Tata’s EV sales (it started selling Tigor EV before Nexon). Without it, the in- dustry would have declined by 15-20 per cent. Also, the Nexon EV has surpassed the cumulative sales of any EVs in the past. “A smart strategy with a clear focus on breaking the key EV bar- riers and partnerships with group companies such as Tata Power, Tata Chemicals, Tata Auto- Comp Systems, and Tata Capital for establishing the EV ecosystem, has paid dividends for the company,” says Shailesh Chandra, Pres- ident, Passen- ger Vehicle Business Unit, Tata Motors. Attracting users A consumer survey during the conceptual stage revealed that the company should overcome three major barriers to make its EVs attractive. First, electric cars are priced 2-2.5 times higher . Second, the clear answer for range concerns was that buyers will not show interest if the range was less than 200 km. Third, EVs did not provide a thrill while driving. “We took these boundary con- ditions and designed the Nexon EV to bust all the key myths, and it was done within just 14-16 months. We brought a vehicle that was tailor-made to the needs of the customers,” says Chandra. The Nexon EV is just 1-1.5 lakh more expensive than the Nexon diesel AMT. “Of course, the Nexon model itself is stylish and the safest car with the highest rating. Combin- ations all these factors helped change buyer perception about EVs,” points out Chandra. The compact SUV charged up the entire ecosystem with smart partnerships How Tata made Nexon EV a success story

How Tata made Nexon EV a success story

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Page 1: How Tata made Nexon EV a success story

G BALACHANDARChennai, December 28

In one month, Tata Motors will becelebrating the fi��rst anniversaryof the launch of its electric com-pact SUV Nexon in the Indianmarket. The journey of this‘Made in India’ electric car will godown as one of the successfulstories of Covid-19-battered 2020.

Tata Nexon EV, formally intro-duced on January 28, 2020, hasdefi��ed market trends with stronggrowth in sales despite the non-availability of what the industrycalled a major EV adoption seg-ment — the fl��eet, which wascrippled by the pandemic.

Covid-19 and the resultantlockdown slammed the brakeson the evolving EV ecosystem,particularly the development ofcharging infrastructure. All key

growth segments — public trans-port, mobility in cities and thefl��eet segment — were impacted.

But Tata’s Nexon EV managedto crack the market.

Breaking barriersDespite losing the fi��rst quarterdue to the lockdown, the in-dustry has sold about 3,000 elec-tric cars (2,959 units precisely)during the April-November2020 period. This iswithout the fl��eetsegment,which repor-ted 80-85 percent declineas it was un-derutilised.So, the entiregrowth was drivenby the personal seg-

ment, which was perceived as aslower adopter due to some bar-riers. Of the 2,959 units sold,2,800 came from the personalsegment, an increase of 2.5 timesover the previous year (a low baseperiod).

The impressive part of thestory is that of the total sales of2,959 units, the Nexon EV accoun-ted for 2,086 units (2,200 unitssince the launch) — about 70 percent of the total industry salesand 4-

4.5 times growth for Tata’s EVsales (it started selling Tigor EVbefore Nexon). Without it, the in-dustry would have declined by15-20 per cent. Also, the Nexon EVhas surpassed the cumulativesales of any EVs in the past.

“A smart strategy with a clearfocus on breaking the key EV bar-riers and partnerships withgroup companies such as TataPower, Tata Chemicals, Tata Auto-Comp Systems, and Tata Capital

for establishing the EVecosystem, has paid

dividends for thecompany,” saysShaileshChandra, Pres-

ident, Passen-ger VehicleBusiness Unit,

Tata Motors.

Attractingusers

A consumer survey during the

conceptual stage revealed thatthe company should overcomethree major barriers to make itsEVs attractive. First, electric carsare priced 2-2.5 times higher .Second, the clear answer forrange concerns was that buyerswill not show interest if therange was less than 200 km.Third, EVs did not provide a thrillwhile driving.

“We took these boundary con-ditions and designed the NexonEV to bust all the key myths, andit was done within just 14-16months. We brought a vehiclethat was tailor-made to the needsof the customers,” says Chandra.

The Nexon EV is just ₹��1-1.5 lakhmore expensive than the Nexondiesel AMT.

“Of course, the Nexon modelitself is stylish and the safest carwith the highest rating. Combin-ations all these factors helpedchange buyer perception aboutEVs,” points out Chandra.

The compact SUV charged up the entireecosystem with smart partnerships

How Tata made Nexon EV a success story