MG's Windsor sales in top gear, Tata Motors' EV monopoly under threat

Giving a tough time to Tata Motors, which had a monopoly in the electric passenger vehicle market until last year, JSW MG Motor India is gathering momentum with the launch of the new MG Windsor.

 

The Windsor not only contributed to 30 per cent of total wholesale electric car sales in October but also received an average of at least 200 bookings per day since its launch.

 

In addition, the company saw 15,000 bookings within the first 24 hours, extending the waiting period to between four and over six months, depending on the variant.

 

On the other hand, with competition in the EV space slowly heating up, Tata Motors' retail market share, which was 74 per cent in October 2023, fell to 58 per cent in October 2024, according to data from the Federation of Automobile Dealers Associations (FADA). 

 

 

JSW MG Motors told Business Standard that, with plans to launch one product every six months, competition may further intensify. Interestingly, the share of EVs in MG's portfolio also increased from a mere 35 per cent last year to around 70 per cent in October.

 

For the entire 2024-25, the company expects this figure to be in the range of 50 per cent, with all three models (Comet, ZS and Windsor) finding takers. In terms of wholesale numbers, Windsor clocked 3,116 units in October, 30 per cent of the entire industry.  

 

“Windsor created a record for the industry. No other EV has got 15,000 bookings within 24 hours in the past. We are currently hitting about 3,000 vehicles per month for this quarter. From January onwards, we will ramp up our production in a structured manner,” said Satinder Singh Bajwa, chief commercial officer of JSW MG Motor India. 

 

One key attraction of the Windsor is its unique battery-as-a-service (BaaS) ownership model, which allows customers to just pay for the car and spend on the battery as per usage.

 

This is similar to refuelling a conventional car and bringing down the initial purchase price. 

 

Tata Motors said that it has 'done the maths' on the BaaS model, and is 'unconvinced' about its passenger vehicles (PVs).

 

“Most customers are still buying the car and not BaaS. We see this more as an excitement and market activation tactic,” said P B Balaji, group chief financial officer, Tata Motors. He was addressing the media after its Q2 results.

 

He added that goods and services (GST) angles also need to be “thought through.” “So, an end-to-end proposition has to be thought about and not just Baas,” Balaji added. 

 

When asked about competition from Tata Motors and others, Bajwa indicated that healthy competition is helpful for customers.

 

“Some launches are giving a push to the industry this financial year. Like Tata Motors already came out with its product, our Windsor is in, and several others are lining up in the next five months. If the product is good, the industry will expand. It is the collective responsibility of original equipment manufacturers (OEMs) to expand the EV industry. Hence, it is good if everybody brings in good products in the interest of customers,” Bajwa told Business Standard.

 

MG is planning to come up with a new product every four to six months.

 

Fleet sales have been hit for Tata Motors for its EV segment with the FAME subsidy going away for this segment.

 

As such, fleet sales contribute to around 15 per cent of overall sales for the company. 

 

Balaji said total cost of ownership (TCO) is a main concern for the fleet operator or buyer in this segment. With the FAME subsidy, the put-down cost (downpayment) was lower. "We are working on the right TCO proposition. CNG is also becoming prominent in this space," he added. 

 

As of Q2FY25, Tata Motors market leadership in EVs stood at 65 per cent. EV personal segment market share came in at 67 per cent. EV penetration was at 12 per cent and CNG at 21 per cent in H1FY25.

 

Curvv EV launched during the quarter and also the Nexon EV 45 kWh (with a longer range).

 

The company said that a strong booking pipeline was built up for new launches – with only limited deliveries possible in Q2. This means these dispatches will happen during Q3. 

 

Shailesh Chandra, managing director TMPV and TPEM said after Q2 results, “The passenger vehicle industry in Q2 FY25 witnessed 5 per cent decline in registrations, resulting in continued build-up of channel inventory. Sales of EVs were additionally impacted by lapse of certain subsidies. We moderated our offtakes in Q2 to proactively keep our channel inventory under control. Q3 has started off with a resurgence in industry demand on the back of a robust festival season. Tata Motors recorded its highest ever monthly registrations of 68,500 units during October, which helped in bringing down the inventory to normal levels.”