NEW DELHI, Sept 12 (Askume) – India’s top electric carmaker Tata Motors is trying to woo consumers with free charging and heavy discounts, while rival MG Motor has launched its own brand of electric vehicles aimed at boosting sales.
The use of electric vehicles (EVs) has grown rapidly in recent years, accounting for 2% of India’s annual sales of 4.2 million vehicles, but sales growth is now slowing, which analysts attribute to rising prices and inadequate charging facilities.
Satinder Singh Bajwa, Chief Commercial Officer, MG Motor, said, “We want to make electric vehicles affordable.” The company launched new electric vehicles with battery rental services, the first of its kind in the world.
“You pay the same price for battery use as you pay for fuel,” Bajwa said. The company, a joint venture between India’s JSW Group and China’s SAIC Motor Corp (600104.SS) , is trying to make one of the most expensive auto parts affordable for buyers.
The effective cost of the “battery-as-a-service” plan will be Rs 3.5 (4 cents) per kilometre, though customers will have to pay for at least 1,500 kilometres (932 miles) per month to ensure a low initial cost of ownership.
This effort is very much needed.
For example, India’s largest electric car maker Tata Motors (TAMO.NS) sold just 4,086 electric cars in August. That’s down by about 15% compared to the same period last year and the fourth consecutive month of annual decline in the world’s third-largest auto market.
Tata this week said it will cut prices of its Punch and Nexon models by about 10% to 20% as it looks to take advantage of a surge in consumer purchases during the festive season and that the company’s power units will come with free charging for six months at .5,500 stations.
The company said in a statement that the price cuts and other offers are “a step towards bringing electric vehicles into the mainstream and accelerating EV adoption.”
Specifically, they have reduced the price of the best-selling Nexon by around $15,000 while keeping it in line with the petrol or diesel versions.
Despite government efforts to promote sales of clean cars, Indians prefer petrol and diesel vehicles because charging stations are few.
While sales of electric scooters have increased significantly due to high demand from e-commerce companies, annual sales of electric scooters still remain below 100,000 units.
But that has not stopped companies such as MG Motor, BYD (002594.SZ) , BMW (BMWG.DE) and Mercedes-Benz (MBGN.DE) from launching their own models, many of which have become popular among India’s increasingly affluent people.
MG Motor this week launched the Windsor EV, aimed at more buyers, priced at Rs 999,000 ($11,900).
Features include a panoramic glass sunroof, reclining rear seats, six airbags and free charging at multiple stations for a year.
