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At the ongoing NADA Auto Show 2023, Tata Motors has launched Tiago EV in Nepal alongside the company's fuel-run Punch model, and Tata Nexon EV Max. Sangay Sherpa from The Himalayan Times met with Mayank Baldi, head of international business, passenger vehicles at Tata Motors, who is on his regular visit to the country, to gain his insights into the country's automobile industry and the company's outlook for Nepal. Excerpts:
Please share the purpose for your visit.
The NADA Auto Show, the biggest in the country, is held every year and it is a huge deal for Tata Motors as a brand. Apart from NADA, I come to Nepal every three months. Along with expanding our business with Sipradi, this time I am meeting our customers, and launching Tiago EV, our new electric segment vehicle for Nepal which has been doing very well in India. Now, we hope that the aspiration of Tiago EV, if delivered at an affordable price, can attract more customers for Tata Motors here. Tata Motors has been moving ahead towards the next transformation in automobiles, which is the EV.
The Nexon EV was our first successful product and today we are extremely proud that EVs have become mainstream in Nepal. While various other brands have also entered the country, Tata Motors took the lead along with our partner Sipradi, which has set up a brilliant infrastructure, service ecosystem, charging networks, and capable manpower, to support our aspirations. As the market is leaning towards EVs, Tiago EV is here as our next product and we are extremely confident that it will be the next success factor for Tata Motors and Sipradi.
How does Tata Motors perceive the current automotive market scenario in Nepal? Are there any issues and challenges hindering demand here?
The automotive industry is indeed a challenging sector, and this holds true not only in Nepal but also in many other markets. Tata Motors has faced its fair share of challenges in Nepal but has managed to adapt to the unique demands of the market. One significant shift has been from internal combustion engines (ICE) to electric vehicles (EVs), a trend that Tata Motors was quick to embrace. This transition aligned with the government's vision for a greener future, and Tata Motors, in collaboration with Sipradi, worked to establish a robust EV infrastructure in the country. Additionally, favourable taxation policies that reduced taxes on EVs have benefited companies like Tata Motors. This move reflects the global shift toward environmentally friendly transportation solutions.
While policy changes and market shifts do present challenges, Tata Motors believes in turning these challenges into opportunities. We have expanded our product range to cater to different customer preferences, offering options like the Tiago EV for the smart segment, Nexon EV, and the Punch model for those who still prefer ICE vehicles. Tata Motors remains responsive to market needs, addressing issues related to tax changes, shifts from ICE to EVs, changes in government policies, and financing.
With improved liquidity in the market, more people are inclined to purchase cars.
In summary, Tata Motors sees significant opportunities in the evolving Nepali automotive market and is committed to playing a vital role in meeting the aspirations of Nepali customers.
How does Tata Motors incorporate customers' feedback to improve its products?
When designing products for markets like Nepal, comprehensive testing is essential to ensure they meet the unique requirements of the region. Tata Motors has followed this approach with models such as Nexon Prime and Nexon Max, and we are planning to do the same with the Tiago EV. These tests include evaluations on various terrains and engagement with auto enthusiasts and customer clinics, allowing Tata Motors to enhance its products. Moreover, we maintain regular customer interactions, with meetings occurring every three months. Customers have shown openness to the brand, a trust that Tata Motors values and appreciates.
While it is possible that there may be occasional product complaints, Tata Motors is confident in the service team's ability to address them promptly.
The company has learnt from past experiences, particularly with some Nexon EVs over the last two years, and has taken proactive measures to prevent similar issues from reoccurring. Feedback from customers and the regular monitoring of customer satisfaction index (CSI) are integral parts of Tata Motors' quality improvement process.
What are your suggestions for auto stakeholders who are facing issues in adapting to the current market scenario?
Before launching a product, it's crucial to ensure that all the necessary elements are in place, including financing options. Tata Motors follows a comprehensive approach that involves engaging with dealers, customers, and financing partners. This collaboration provides valuable insights into the market's readiness.
For example, before introducing the Tiago EV, Tata Motors assessed the availability of funds and channels for every dealer to ensure adequacy. We also considered whether financiers were ready to support the product. This proactive approach ensures that when a customer walks into any dealership, financing options are readily available.
A positive aspect is that financial institutions are showing greater support for EVs compared to ICE counterparts. Banks now offer a loan-to-value ratio of up to 80 per cent for EV customers, making the EMI (equated monthly instalment) highly affordable. As a result, there is a growing demand for EVs, and more customers are coming forward.
The hesitation regarding financing and availability is diminishing with the upliftment of the entire financing sector.
While the Nexon EV is doing very well in the market, is there any particular reason for launching Tiago EV in Nepal?
In Nepal, customers have diverse preferences and choices when it comes to purchasing vehicles. The market caters to a significant population of tech-conscious youth and individuals seeking the right product with the appropriate features at a competitive price. Tata Motors, in partnership with Sipradi, recognises the importance of delivering quality vehicles and ensuring customer satisfaction from the moment they make a purchase.
When launching products like the Nexon EV and the Tiago EV, Tata Motors considered the specific needs of different market segments. While SUVs hold the majority of the market share, hatchback models are also popular among Nepali consumers. The Tiago EV is designed to meet the requirements of individuals with daily commutes of less than 20 km, small families, women transitioning to EVs, and new college graduates. Tata Motors aimed to make the Tiago EV an attractive choice by offering an aggressive pricing strategy, making electric mobility accessible to a broader audience.
Furthermore, Tata Motors has integrated the pricing offer for the Tiago EV with the NADA Auto Show, acknowledging the high interest and expectations associated with this event. They recently launched Tiago EV bookings with a secret introductory price, aligning with the event's scheme and on-thespot booking opportunities.
This strategic approach reinforces Tata Motors' position as a go-to choice for consumers considering EVs, complementing the success of the Nexon EV.
What is the company's outlook for Nepal? Please share your observations on the market and consumer trends as well.
Tata Motors places utmost importance on its customers. Understanding the diverse needs of Nepali consumers, including their preferences for choices, technology, performance, and style, is at the core of the company's approach to success. Tata Motors doesn't consider the sale of a product as the end of the customer journey; instead, it focuses on ensuring that customers remain confident in the service, customer support, and availability of charging stations, among others.
Prior to introducing the Nexon EV and Tiago EV to the market, Tata Motors took meticulous steps to prepare the needed infrastructure ecosystem. This involved comprehensive training programmes, establishing service centres, and expanding the charging infrastructure. As of now, Tata Motors boasts 22 fast DC chargers, over 100 AC fast chargers, and over 50 AC chargers in Nepal.
We have also set up a battery treatment and recycling plant and an EV learning centre, which is unique in the country.
This infrastructure is aimed atinstilling confidence in customers when choosing Tata Motors. With all these preparations in place, the launch of the Tiago EV is set to meet high demand. Tata Motors is confident that this approach sets us apart, with customer confidence in the brand being the key differentiator.
Furthermore, in alignment with the future of the market, Tata Motors recognises the growing importance of EVs and anticipates a booming market. We are prepared to contribute to this growth and offer more choices to customers. Tata Motors, in partnership with Sipradi, is fully committed to being a leader in Nepal's successful EV transition story, aligning with the aspirations of Nepali consumers.
A version of this article appears in the print on September 14, 2023, of The Himalayan Times.
