Tata Motors has sought targeted incentives for entry-level electric vehicles and support for electric cars used in the fleet segment under the PM E-DRIVE scheme in the upcoming Union Budget.In an interaction with news agency PTI, Tata Motors Passenger Vehicles managing director and CEO Shailesh Chandra said that while recent government interventions have helped revive demand in the passenger vehicle (PV) industry, entry-level EVs continue to face significant pressure. He appreciated steps such as GST 2.0, repo rate reduction and changes in the tax regime, saying these measures have played a key role in boosting overall PV demand as well as the electric vehicle segment.“I would like to really appreciate the government for reviving the PV industry and the electric vehicle side as well. Two things which can be considered (in the Budget). One there is a lot of pressure on the entry segment on the EV side and if the government would like to consider some level of incentives,” Chandra said, as reported by PTI. He added that GST reforms have led to lower prices for petrol cars, further increasing pressure on entry-level EVs.
Fleet EVs need renewed policy support
Chandra also highlighted the importance of electric cars used in the fleet segment. According to him, fleet EVs account for just about 7 per cent of overall PV sales but contribute nearly 33–35 per cent of passenger kilometres. He noted that while such vehicles were supported under the earlier FAME-2 scheme, they are currently not included in the PM E-DRIVE scheme.“A fleet car runs five times more than a passenger car. So, therefore, the support that you give to the segment has a multiplier impact at an environmental level… and on the import of oil,” he said, adding that the government may consider including fleet EVs under PM E-DRIVE, as per PTI.On pricing, Chandra said forex challenges and elevated commodity prices have had an impact of around 2 per cent on the company’s revenues, which has not yet been passed on to consumers. He said a decision on vehicle price hikes would be announced in the coming days, amid similar moves by other automakers.
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