Balaje Rajan, Chief Strategy Officer and Vice President of International Business at Tata Motors, is currently in Nepal to promote sales of TATA vehicles in view of the NADA Auto Show. The company also plans to launch Punch EV during the Show. In an interview with Republica, Rajan shares insights into the company's perspective on the rapidly evolving automobile market in Nepal. With a special focus on the increasing adoption of electric vehicles (EVs), Rajan discusses Tata Motors' strategic initiatives, the successful launch of their EV models in Nepal and plans for future expansion. As Nepal emerges as a leading market for EVs in South Asia, he believes that Tata Motors is poised to play a pivotal role in shaping the region's automotive future. Excerpts:
Can you provide an overview of Tata Motors' perspective on the automobile market in Nepal, particularly in light of the recent surge in EV adoption?
I think Nepal has been one of the most progressive countries in terms of encouraging EV adoption, not just in South Asia, but globally. Today, EV penetration in new car sales is almost 80%, which ranks very highly among most countries in the world. The market has quickly adopted EVs, and people are also very comfortable with them. The terrain of Nepal and the traffic patterns here create a preference for EVs because they are easy to drive, and the cost of running an EV is very low.
To be honest, in a country like Nepal, you probably require only about 200 to 250 kilometers of range, considering the amount of time it takes to drive that distance. Even a 100-kilometer drive can take several hours, during which you'd take breaks. So, given all of these factors, Nepal is ideally suited for EVs, especially for longer distances. This is why Nepal is rightly one of the leading countries for EV adoption. For Tata Motors, Nepal holds a special place because we introduced the Nexon EV here, and it was embraced with so much love. It's very core to our international business strategy. The market size may be small, but we are very keen to be the market leader here.
Following the successful launches of the Tiago and Nexon EV in Nepal, can you discuss any plans to introduce the new Punch EV to this market?
We believe that the Punch EV will help expand the EV market in Nepal and offer customers a very strong value proposition. It has a compact footprint but also a very high ground clearance, allowing you to drive outside the valley and through difficult terrain. It has all the characteristics of an SUV, while its compact size enables easy navigation through narrow city roads. It comes with advanced features and a real-world range of over 270 kilometers in Nepal, which we have tested. It will be a vehicle that Nepalese will find ideal for their needs. We’re very excited about it. We took a few months to bring it here, but we did extensive testing in Nepal to ensure that it’s the ideal vehicle for the conditions here. Moving forward, we plan to introduce newer models as well. But I think between the Punch EV and the Tiago EV, we are offering very practical and accessible vehicles to all Nepalese car buyers.
Embracing EVs for Sustainable Future
The Punch EV has been very successful in India. Do you anticipate a similar impact in the Nepalese market?
The Punch EV has been the number one selling car in India this calendar year, and we’re very proud of that. Both the petrol and EV versions of the Punch have done exceptionally well. The Punch EV has also been the number one selling electric SUV in India this year. The reasons are the high ground clearance, compact footprint, and spacious interior. Despite its compact size, it’s very spacious inside. Given these factors, we believe it can be very successful in Nepal as well. We are excited and hope to at least replicate the Tiago's success, if not surpass it.
How does the Punch EV compare to previous Tata EVs in terms of pricing and performance?
Let me talk about the engineering architecture and performance first. The Punch EV is built on what we call the "active architecture." This is Tata's first product designed on a pure EV architecture, which allows for greater flexibility and optimization. This means the car will significantly outperform previous generations in terms of powertrain, chassis, and electrical electronics architecture. You'll find that it feels like a generational leap compared to, for example, the Tiago EV. It incorporates multiple new technologies, all available at an accessible price point. Overall, it’s possibly the best package you can find in an SUV.
Considering the differences in terrain and infrastructure between Nepal and India, some customers have expressed concerns about the discrepancies between the advertised range and actual range. How does Tata Motors plan to address these concerns?
It’s important to consider real-life range. For the Punch EV, we’ve used actual running data from Nepal to declare the range for regulatory reasons. In India, there’s a specific test that the car must undergo, and a government agency certifies that range, which we must declare from a regulatory standpoint. However, we have taken customer feedback into account, considering Nepal's terrain and different use cases, such as traffic speed. Alongside the regulatory range, we will also declare and promote the real-world range in Nepal as part of our advertisements so that customers know what to expect.
In a market where Chinese electric vehicles have become increasingly influential, how does Tata Motors plan to differentiate the Punch EV in the Nepalese market?
The Chinese have been competing everywhere, including in India, where we’ve managed to maintain a 70% market share through the strength of our products. The Punch EV, like our other products, is tailored to meet the requirements of South Asian conditions. Additionally, we have strong support through our partners at SIPRADI, who provide a robust charging and service ecosystem. We are proud to be the only ones capable of doing battery repairs in the country, and we have the largest and strongest EV charging network in Nepal. The combination of a tailored product and this comprehensive ecosystem, plus the trust in our brand name, truly sets us apart. While there may be new Chinese entrants in the market, we believe our value proposition is very strong.
What role does Tata Motors envision for itself in the broader South Asian electric vehicle market?
That’s a very good question. In South Asia, some markets are currently closed due to import restrictions, but they are in the process of opening up. Nepal has set an example by declaring a bold aspiration to encourage EVs, which other South Asian countries should follow, especially since South Asia lacks oil resources. EVs make a lot of sense in these countries, particularly because they can help conserve foreign exchange spent on oil imports. We’re advocating for similar policies in other countries. We’re hopeful that one of the other Himalayan countries will soon lift its import ban, and we’re encouraging them to replicate Nepal’s strategy.
In South Asia, we see ourselves as both evangelists and pioneers of electric vehicles. We’re using Nepal as a case study to demonstrate the benefits of EVs to other governments. In the medium to long term, we expect South Asia to be a leading geography for EV adoption, and we want to be at the forefront of that movement.
What are Tata Motors' plans for future EV launches in Nepal, and how will these models be priced to compete with other brands, particularly those from China?
We are clear about the need to be competitive, both in pricing and product offerings. You’ll see this reflected in the Punch EV and our forthcoming launches. However, we’re not yet in a position to announce specific launch plans because, when we launch cars in India, there’s usually a period before we can bring them to Nepal due to local homologation requirements. We’re working to shorten this window so that the products we launch in India can reach Nepal sooner. We’re very excited to bring as many of our new models as possible to Nepal with minimal delay.
Do you have anything more to say to assure Tata vehicle customers here in Nepal?
I would like to emphasize the extensive infrastructure that our partner SIPRADI has developed, not just for selling EVs, but also for ensuring that they can be repaired, reconditioned, and their lifespan maximized. This should give all customers in Nepal confidence to go electric, knowing that there is lifelong assurance of service. We’re very happy and proud to offer this unique service in partnership with SIPRADI.
