Subject category:
Marketing
Originally published in:
2022
Version: 11-Jan-2022
Length: 15 pages
Data source: Published sources
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Abstract
Tata Motors debuted the Nexon EV SUV electric vehicle in January 2020, but total electric vehicle sales reached 961 in August 2021. In August 2021, total car sales in India were 2,59,555 units, an 11.8 percent reduction from 2,94,330 units in July 2021. The problems of purchasing an electric vehicle have been discussed among industry insiders and prospective buyers. The average on-road pricing of electric vehicles in India was too high, making them unappealing to buyers. Start-ups and automakers are split between cutting the cost of electric vehicles and investing in infrastructure. When it comes to electric vehicles, car purchasers have a lot of questions. The main concerns were a lack of charging infrastructure, reliance on imported batteries, reliance on imported components and parts, incentives tied to local manufacturing, consumer range anxiety, the current high price of EVs, a lack of high-performance EV options, insufficient electricity supply in parts of India, and a lack of quality maintenance and repair options, all of which were exacerbated by the broader automobile industry downturn. REVA, the country's first electric automobile, debuted in 1994 but was withdrawn from the market after 20 years after several attempts to win favour in the Indian market. They all, however, have an impact on the future of electric vehicles in India. The case addresses how mainstream consumers can accept this new sort of car. This example demonstrates to students how to apply the notion of crossing the chasm by discussing it in the context of EVs.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured company
Tata Motors Limited
Employees:
1001-5000
Turnover:
INR 479 billion
Type:
Public company
Industry:
Automobile
About
Abstract
Tata Motors debuted the Nexon EV SUV electric vehicle in January 2020, but total electric vehicle sales reached 961 in August 2021. In August 2021, total car sales in India were 2,59,555 units, an 11.8 percent reduction from 2,94,330 units in July 2021. The problems of purchasing an electric vehicle have been discussed among industry insiders and prospective buyers. The average on-road pricing of electric vehicles in India was too high, making them unappealing to buyers. Start-ups and automakers are split between cutting the cost of electric vehicles and investing in infrastructure. When it comes to electric vehicles, car purchasers have a lot of questions. The main concerns were a lack of charging infrastructure, reliance on imported batteries, reliance on imported components and parts, incentives tied to local manufacturing, consumer range anxiety, the current high price of EVs, a lack of high-performance EV options, insufficient electricity supply in parts of India, and a lack of quality maintenance and repair options, all of which were exacerbated by the broader automobile industry downturn. REVA, the country's first electric automobile, debuted in 1994 but was withdrawn from the market after 20 years after several attempts to win favour in the Indian market. They all, however, have an impact on the future of electric vehicles in India. The case addresses how mainstream consumers can accept this new sort of car. This example demonstrates to students how to apply the notion of crossing the chasm by discussing it in the context of EVs.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured company
Tata Motors Limited
Employees:
1001-5000
Turnover:
INR 479 billion
Type:
Public company
Industry:
Automobile