Tata Motors’ EV Market Share Drops to 58% as MG Windsor Captures 30% of October Sales

India’s electric vehicle (EV) market is witnessing a paradigm shift as competition heats up, particularly in the passenger EV segment. Tata Motors, which dominated the segment until recently, now faces strong competition from new entrants like JSW MG Motor India, whose new MG Windsor model has gained significant traction.

Also Read: MG Windsor EV Review: Wind Of Change

Launched recently, the MG Windsor has quickly emerged as a significant player in India’s EV market. In October alone, Windsor sales accounted for 30 per cent of total wholesale EV sales, with daily bookings reportedly surpassing 200 units. Within the first 24 hours of its launch, MG secured 15,000 bookings, leading to an estimated waiting period of four to six months, depending on the variant. This surge in demand has shifted MG’s EV market strategy, with the brand’s EV portfolio share increasing from 35 per cent last year to 70 per cent in October 2024.

A major factor behind the Windsor’s appeal is its innovative battery-as-a-service (BaaS) model. This feature allows customers to buy the car without the battery, instead paying for battery usage as needed, a structure intended to lower upfront costs. The BaaS model resembles a pay-per-use refuelling system, which MG hopes will appeal to price-sensitive consumers.

Also Read: Battery As A Service Scheme Likely To Be Offered On Other MG EVs

Despite its declining market share, Tata Motors remains the leader in India’s EV segment, although its hold on the market is loosening. Tata’s EV retail market share dropped from 74 per cent in October 2023 to 58 per cent in October 2024, according to data from the Federation of Automobile Dealers Associations (FADA). In response to intensifying competition, Tata Motors recently launched new models, such as the Curvv.ev and an extended-range version of its Nexon.ev, which have driven strong customer interest. Limited deliveries of these models were possible in Q2, but Tata Motors anticipates an increase in Q3 dispatches to fulfil the high demand.

Tata Motors, however, is sceptical about MG’s BaaS model. P B Balaji, Tata Motors' Chief Financial Officer, downplayed the concept’s viability for passenger vehicles, suggesting that it may be more of a promotional strategy than a sustainable solution. According to Balaji, Tata Motors has considered the financials of BaaS, concluding that it may not align well with the company’s overall value proposition, particularly due to complexities around goods and services tax (GST) and total cost considerations.

Also Read: Tata Motors Revenue Declines Amid Supply Constraints, Strong Demand for EV Models In Q2 FY25

The lapse of certain government subsidies, notably the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) subsidy, has also impacted Tata’s EV sales, especially in the fleet segment. As fleet buyers are highly sensitive to the total cost of ownership, Tata is re-evaluating its product mix and pricing strategy to address this change, including a potential increase in CNG options.

To maintain momentum, MG has outlined plans to release a new model every four to six months, strengthening its presence across various EV segments. For the current fiscal year, MG projects that half of its total sales will come from EVs, driven by a strong lineup of models, including the Comet, ZS, and Windsor.