Metro India News | new delhi

Tata Motors has urged the government to consider targeted incentives for entry-level electric vehicles (EVs) and extend support to electric cars used in the fleet segment under the PM E-DRIVE scheme in the upcoming Union Budget, citing sustained pressure on affordability despite broader market recovery.

In an interaction with PTI, Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra said recent government measures such as GST 2.0 reforms, repo rate cuts and changes in the tax regime have helped revive demand in the overall passenger vehicle (PV) industry. However, he noted that entry-level EVs continue to struggle due to pricing pressure.

Chandra pointed out that GST reforms have led to price reductions in petrol cars, intensifying competition for entry-level electric models. He said limited incentives for this segment could help address the imbalance and accelerate EV adoption at the mass level.

Highlighting the importance of fleet electrification, Chandra said EVs in the fleet segment account for only about 7 per cent of total PV sales but contribute nearly 33–35 per cent of passenger kilometres. He added that fleet EVs, which were supported under the earlier FAME-2 scheme, have not been included under PM E-DRIVE so far.

A fleet vehicle runs nearly five times more than a personal car, Chandra said, noting that incentives for this segment have a multiplier effect in reducing emissions and lowering oil imports. He suggested the government consider bringing fleet EVs back under incentive coverage.

On pricing, Chandra said forex volatility and high commodity prices have impacted revenues by around 2 per cent, which has not yet been fully passed on to consumers. He added that the company will announce any price hike decision in the coming days.