com and I have the privilege to be joined by Mr Shelley Chandra? He leads the passenger vehicle and the electric vehicle uh business at Tata Motors and what a day challenge youve, given the countrys first sub 10 lakh EV, also its first electric hatchback uh, and no wonder its come from the data Motors brand right with the next one. You need your already Market leaders, uh buyer. I mean by far in the electric vehicle segment, so tell us what made you think of a more affordable car at this price point uh. You know when, typically the strategy we have seen uh oems follow is more top down. So how have you thought about it and what sort of I mean? Do you think it could be a bigger Force than Nexon has been for you, so I you know we we would not have very much deviated from the other strategy. We have also come top down uh we started with the next one. Then we launched the tagore and then we have launched the Tiago and theres a reason behind it because, as you are building scale, where you have a more leeway to earn margins and price the car higher, you then use those commonality to drive in lower segment cars. Where you can then take the benefit of a larger scale which is coming from ziptron now ziptron has a good base, but it started with Thiago. It would hurt the pressure of doing that job.

So next one and tagore has done that job and therefore optimize the cost of a ziptron. You know technology and components. Thiago in general is a very successful car, so it also gets the benefit of economies of scale coming from the highest world because we are selling in you know nearly seven eight thousand of ice. So therefore it is getting that Advantage. Then these last two three years, we have also worked on localization right. This has also helped us bring down the cost, so this was therefore the right time to bring a hatch after having achieved the cost, efficiencies and uh. Therefore, position of product which will help you get a bigger customer base and future products that you are going to come with. This is the customer base, which will upgrade also so it was important to if you have to drive Mass adoption in the country. You needed a product with a compelling value proposition like they are going to do what we have come back and you know, interestingly, uh out of the first 10 000 cars. You will sell at your introductory price, youve reserved 2000 for your existing EV customers, which means that there is a lot of appetite with existing customers for more EVs and, like you said, you hope that they will sort of stay with the brand upgrade and in this Case you know even get an additional card from a different or a lower segment. Tell us what your observations have been there, a simple.

You know the idea actually came when uh after we announced on Ninth uh September about Our intention to launch Tiago. We some of our existing customers, wrote to us that I am going to buy a second EV, so I want to convert my existing eyes. Second car also to you that actually gave us the idea that these are already converted. Customers all the myths – and you know, misconceptions about EV. They have already crossed the hum and therefore they will. They have typically between three cars, all the EV buyers. You know next one and those people who are buying 15 lakh plus cars. They typically have two three cars why they would not replace and the request started pouring in so we saw thought that we have to acknowledge the role that the early Pioneers or early adopters have played and had shown the faith in the brand and have been talking Very positively about their experiences, which has also helped break lot of myths in the electric vehicle, a potential prospective customers. So this was in a way, uh kind of a good gesture that we gave of also resolving this 2000. for their immediate relatives right, uh, Chinese. The other thing is that you know youre launching a car in the hatchback segment after all, and weve been talking about how the segment and weve seen and the numbers that the segment has not really grown at all, while its the SUV segment and your own launches.

In the SUV, segment have done phenomenally well so uh. What uh sort of gives you confidence that this product will see good off, take despite being in a segment thats, not really growing. You know. The pressure that you are facing in the entry segment is coming from. Two directions: one is the regulation uh and the second is because of the rising running costs because of petrol prices and all increasing, and that is to a great extent impacting that. Actually, this is just going the opposite view, but Tiago EV because of electricity prices being stable uh. The advantage is actually increasing more and today we showed a calculation that even somebody is doing. Standard thousand kilometer drive a month is saving 6 500 rupees per month, which translates to nearly 75 80 000 a year. This car comes at a premium of what uh one and a half lakh, or so today, Tiago AMT sells in between eight to nine and a half lakhs. We have launched a pretty much uh overlapping uh slightly more. If you take the you know, you know the registration charges and and the insurance and all it will go slightly higher, but still 10 15 premium to that. So it has come at the right time, actually where the emotions are high on increasing running cost. This just comes at the right time. I would say absolutely so. In fact, this is the car, perhaps that actually revive sentiment around the segment as a whole.

Speaking of that uh with the next one, you have a penetration within that model line of 25 or thereabouts. Do you think this is a model that can do that and surpass that number? I believe that it should be able to do more. Is my hypothesis estimate? Whatever you call it a simple reason that this is a very compelling proposition uh, it also is in a situation, unlike next one, where there is a better awareness of charging at home generally charging in price growing. There is greater confidence among customers that this problem will be over and uh. We are expanding into nearly double the cities where we are present today. So all these factors should take the penetration to slightly higher level. I am estimating, maybe 30 35 percent. I I would should happen, I would say immediately from a demand perspective. It should happen immediately. Ill have to run fast on the production side. Absolutely that is a easier problem to solve. Okay, fair enough, then uh Shelley is in the entry level segment or in the hatchback segment. Uh these typically perhaps wont be customers I mean one set of your customers. Is the one whos getting this as an additional car, but for first time buyers? And if that is a segment that youre targeting, there must be concerns about charging infrastructure too, and it can be expected that a lot of these customers wont have dedicated parking spots. You are working with installing common chargers at rwas and we are at one percent sort of penetration for EVS at large, so perhaps its not a very visible problem to us at the moment, but as that becomes four or five percent – and you know eventually, 14 15 – That you said could be natural demand um.

Do you think it will become a greater problem that you need to address see if we go with the business as usual approach that for every customer we are putting one charger, then the problem will aggravate. As we see the penetration growing, and that is the very reason that we initiate it, this action with the help of Tata power to put common charges in the societies, I think you know already. Government has also given mandate uh mood that at least new apartments which are being built will come with 20 percent. So I think the apartments will first, the new ones will start with the more electric charging ready. Uh parking lots with the initiative that we are taking and more residence kind of also pressurizing the societies to put uh charges so that they can buy electric vehicle. It has happened in my Society, so I know that Harvard pressure the societies are also facing. I think these things will go a long way in resolving the problem that you are saying and uh. As you see in Scandinavian countries, charges are everywhere and you can charge it uh. Even with a 7.2 kilowatt charger, AC charger cant go to 11 kilowatt. Also, even you do not have very fast charges, you can do with the you know, slightly enhanced charges, uh uh, which are semi fast or whatever you call it a decent penetration. I would say so. I think slowly. The problem with that solved uh with more awareness coming in and more and more societies also being open.

Today, you face resistance at times right. This will get overcome so, to your mind, whats the initial plan with respect to setting up these charges. Do you have a number in mind, as your sort of you know, preparing to deliver the cars from January? What sort of infrastructure do you think youll be able to uh put up by then also see first, that uh many customers will come. You know hopefully those 2000 customers – they already have a charger right, so they may not have an additional charger. Also, today, we are offering two things: if you dont have a parking lot in your home, well offer it in your office. If your office allows us, this will open more cases for other others. Also, and companies are forthcoming because they also want to be seen. You know more EST, supportive and all so. I think that approach will keep and, as I said, that, well start, you know ramping up in other cities. Also this common charger initiative and progressively this should keep on improving thats all challenge.

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