In a bid to increase EV adoption in the country, Tata Motors has partnered HDFC Bank, India’s largest private sector bank, to offer an electric vehicle dealer financing solution to its authorised passenger EV dealers.
Under this scheme, Tata Motors will provide its dealers additional inventory funding over and above their ICE finance limit with attractive pricing linked to the Repo Linked Lending Rate (RLLR). The repayment tenure will range from 60 to 75 days. Furthermore, the bank will also offer additional limit to cater to high demand phases, which will be available to dealers three times in a year.
The MoU for this partnership was signed by Aasif Malbari, Chief Financial Officer, Tata Passenger Electric Mobility and Director, Tata Motors Passenger Vehicles and Arvind Kapil, Head – Retail Assets, HDFC Bank.
Commenting on the rollout of this finance scheme, Tata Motors’ Aasif Malbari said, “Our dealers have provided constant support to us for faster adoption of EVs, and this association with HDFC Bank will further help us in our vision of achieving green mobility. We are optimistic that through this tie-up, we will make the EV buying experience much easier for our customers and this will positively impact their overall buying experience of Tata cars.”
HDFC Bank’s Arvind Kapil commented, “We at HDFC Bank are delighted to be associated with this programme. This will help us tap new consumer segments through a customised financing programme as well as promote the EV culture in the country. This is one more step in our journey towards becoming carbon neutral by 2031-32.”
With this latest EV dealer inventory financing programme, Tata Motors has partnered the largest banks in the country – on August 12, 2022, it inked a partnership with the State Bank of India, the largest public sector bank, to offer an electronic dealer finance solution to its dealers.
Tata Motors’ EV and PV sales on a roll
Tata Motors is currently averaging monthly EV sales of 3,553 units as it drives towards its 50,000 EVs target this fiscal. On November 7, Tata Motors became the first Indian carmaker to roll out its 50,000th EV, the production milestone coming four years and 11 months after it had rolled out its first EV – the Tigor EV – on December 6, 2017 from its plant in Sanand, Gujarat.
The company currently has a commanding EV market share of over 85%. In the first seven months of FY2023, the company has sold a total of 24,876 EVs, with the highest monthly sales of 4,071 units in October 2022.
Month: EVs sold
April 2021: 2,322
May 2021: 3,454
June 2021: 3,507
July 2021: 4,022
Aug 2021: 3,845
Sep 2021: 3,655
Oct 2021: 4,071*
Total EVs: 24,876
* Estimated
Tata Motors, which has four models – the Nexon EV, Tigor EV, fleet-only XPres-T EV and the Tiago EV (deliveries from January 2023) – is looking to aggressively expand its EV portfolio. It is understood that there are 10 new EVs to be added in the next few years as the company looks to up the ante and also keep new competition at bay.
With India’s passenger vehicle market recording strong double-digit growth, Tata Motors’ PV sales too are recording robust growth. Between April and October 2022, the carmaker has sold a total of 317,667 units comprising 292,791 IC engine models and 24,876 EVs. With five months of the fiscal left, the company is well set to meet its FY2023 target of 500,000 units including 50,000 EVs.
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