[TusharK]

The demand for electric vehicles has picked up considerably over the last couple of years. But, who would've thought that EVs would give diesel variants a run for their money when it comes to sales numbers.



That's exactly what's happened in the case of the Tata Nexon EV. According to PB Balaji, Chief Finance Officer, Tata Motors, the demand for the Nexon EV is almost on par with that of the diesel variant.

The Nexon EV is one of the best-selling electric cars in the Indian market today. Since July 2021, the carmaker has sold 650 units of the electric crossover. One of the main reasons for the growing popularity of EVs in India is the various sops provided by the government, under the FAME-II scheme. The company hopes that the Nexon EV sales would account for 5% of its total sales volume.

The Nexon EV is available in three variants - XM, XZ+ and XZ+ Lux and prices start at Rs. 13.99 lakh (ex-showroom).

Source: Gaadiwaadi

Link to Team-BHP News

[Turbolove]

This definitely sounds a bit off, pre BS6 nexon had roughly 50-50 divide between diesel and petrol in sales, not sure if diesel demand has died to such a large extent as compared to petrol, especially when Nexon is selling over 6-7k units a month.

[shreevishnu]

Why do I sense that this is intentional reporting?

For a company (Tata Motors) looking to sell of some stake financially ("partner") in the Passenger Car business unit, having an EV which is developed in-house, and doing extremely well in the market ("as good demand as diesel") = Very good valuation ("future ready").

If Tesla can say full self driving is ready, this should be allowed too!

[PPS]

Originally Posted by TusharK

the demand for the Nexon EV is almost on par with that of the diesel variant.

The diesel variants of Nexon are a bit overpriced & no longer value for money. Though among the 2, diesel is the better engine.

[Asoon]

Number do-not add up,
Most probably they meant that demand is equal to Internal Combustion Nexon in certain cohorts.
What ever be the exact split, demand is definitely exploding. Nexon EV is becoming more and more common on Indian roads

[pseudo_coder]

Originally Posted by shreevishnu

Why do I sense that this is intentional reporting?

For a company (Tata Motors) looking to sell of some stake financially ("partner") in the Passenger Car business unit, having an EV which is developed in-house, and doing extremely well in the market ("as good demand as diesel") = Very good valuation ("future ready").

If Tesla can say full self driving is ready, this should be allowed too!

You mean the prospective buyer will go by the media reports and not scrutinize the numbers?

[Apex1815]

This decade will see a considerable shift from IC Engines to the electric vehicles. Mods are requested to keep an eye on the monthly Electric Car sales and update in monthly car sales data.
This will be very helpful in understanding the Electric Car growing market and will be helpful for the EV prospective buyers in making the buying decision.

[shreevishnu]

Originally Posted by pseudo_coder

You mean the prospective buyer will go by the media reports and not scrutinize the numbers?

No, but sheep will go buy up Tata Motors stock in the hope of this happening!

Rarely will serious buyers be flayed by such press, but off-late it does affect prices (enterprise value) in an open offer to acquire.

[Emvi]

Originally Posted by TusharK

According to PB Balaji, Chief Finance Officer, Tata Motors, the demand for the Nexon EV is almost on par with that of the diesel variant.

Clever usage of the term, which IMO is nothing but a marketing strategy. The CFO is probably equating DEMAND to interest/enquires, because sales numbers don't justify his claims.

[fiat_tarun]

The BS6 Nexon diesel saw a significant price increase and is almost Rs.1.5 Lakh more than the petrol variant and isn't really value for money anymore. The Nexon diesel share last year was 22% (source) and they are selling around 500-600 Nexon EV's per month which translates to a share of ~7%. (avg. sales of 8k Nexon's a month considered).

If what the CFO is saying is true, the diesel share has dropped from 22% to 7% while EV has grown from 5% - 7%. This is probably just a reflection of the falling demand of the diesel variant. Personally I see this as a statement to create some more hype and hence demand for EV's.

[sri_tesla]

Originally Posted by Turbolove

This definitely sounds a bit off, pre BS6 nexon had roughly 50-50 divide between diesel and petrol in sales, not sure if diesel demand has died to such a large extent as compared to petrol, especially when Nexon is selling over 6-7k units a month.

That's not true. Between April-Dec 2020, 72% of Nexon sales are petrol, 22% of diesel and 6% of electric. Electric is a much cheaper and better option for people with higher daily usage and who are OK with ~200 km of range.

Some of the factors in favor of Electric Nexon vs diesel variant:

• Diesel used to cost Rs 65 to Rs 75 last year. Now it's 95+ in most of the cities.

• Price difference between diesel Nexon vs electric is low especially automatic diesel.

• Tata increasing the production capacity of electric Nexon.

• Tata power is setting up fast chargers at a rapid pace. Go through below twitter account to see how frequently new chargers are being set up.
  https://twitter.com/TataEZChargeBot

Source:
https://www.autopunditz.com/post/202...l-mix-analysis

[Turbolove]

Originally Posted by sri_tesla

That's not true. Between April-Dec 2020, 72% of Nexon sales are petrol, 22% of diesel and 6% of electric. Electric is a much cheaper and better option for people with higher daily usage and who are OK with ~200 km of range.

You are right about the part wherein someone with higher running would prefer the the EV variant.

However going by the numbers you quoted, 22% for diesel and 6% for the EV, we still cant say that both those numbers are close to each other, especially when the Nexon did 10k sales last month.

[rahulskumar]

Originally Posted by Emvi

Clever usage of the term, which IMO is nothing but a marketing strategy. The CFO is probably equating DEMAND to interest/enquires, because sales numbers don't justify his claims.

Most probably it must be the conversion factor, "enquiry to purchase" decision and it must be true. May be % of customers TATA could convert as a potential buyer was the same for both the variants. 5 out of 10 people who enquired for EV, went ahead to buy it where as for Diesel it may be 500/1000

[ZenMaster]

He probably based it off google analytics data on which variant of Nexon is most searched for.

Also, Saying that demand for diesel and EV is same doesn't mean EV sales are rising dramatically, it could just mean that people are buying more of the petrol variants instead of diesel.

On the other hand, TATA Nexon EV is a great homegrown product that more people especially those who are looking for a second car should consider highly consider

[Fiestaboy]

Only in this generation we are seeing some unbelievable or major changes in lifestyle.

Introduction of cellphones to mass.
Online shopping (Amazon, Flipkart etc..)
Lockdown.
Online classes & work from home.
Shift from ICE to EV's (definitely going to happen by 2030/2035).

Before 20years, would anyone in my village have thought these things would happen?
I would strongly say No, but all of this happened except EV's.
So i believe EV's will also take full hold in next decade & quickly ICE's will get away. (unless Petroleum company lobby able to withhold this for little longer)