Tata Motors urges targeted incentives for entry level EVs and fleet electrification amid rising pressure from cheaper petrol cars.
Tata Motors has urged the government to consider targeted incentives for entry level electric vehicles and extend support to electric cars used in the fleet segment under the PM E-DRIVE scheme in the upcoming Union Budget, citing rising pressure on affordable EVs.
In an interaction with PTI, Tata Motors Passenger Vehicles Managing Director and Chief Executive Officer Shailesh Chandra said entry level EVs are facing increased strain as GST reforms and other policy measures have lowered the prices of petrol cars. While recent government interventions have revived demand across the passenger vehicle segment, affordable electric models continue to struggle, he noted.
Chandra said measures such as GST 2.0, repo rate cuts and changes in the tax regime have significantly boosted overall passenger vehicle demand. However, he added that similar targeted support for entry level EVs would help sustain momentum in the electric mobility transition.
Highlighting the importance of fleet electrification, Chandra pointed out that electric vehicles used in fleets account for only about 7 per cent of passenger vehicle sales but contribute nearly 33 to 35 per cent of passenger kilometres. He noted that while fleet EVs were supported under the earlier FAME 2 scheme, they are currently not included in the PM E DRIVE programme.
A fleet vehicle runs around five times more than a private passenger car, he said, adding that incentives for this segment would have a multiplier effect on emissions reduction and lower oil imports.
