Scaling electric cars into mass-market adoption will remain a difficult task unless the government extends targeted support to e-cars priced below ₹10 lakh, said Shailesh Chandra, MD and CEO at Tata Passenger Vehicles, noting that the segment currently faces structural cost challenges.
More than half of India's car buyers are below the ₹10 lakh mark, a segment where the Tata Group automotive flagship sells the Tiago and Tigor electric cars. "If EVs have to go mainstream, this is the segment that must click," Chandra said on Tuesday, pointing out that in small cars, battery costs can account for nearly 70% of the vehicle price while customers still expect a real-world range of over 400 km.
Recent changes in goods and services tax (GST) have further pushed the price parity out of reach for entry-level EVs, he said.
India's electric car market leader wants the Centre to reintroduce incentives on such eco-friendly vehicles used in the fleet segment. He said while fleet vehicles make up only 7-8% of passenger vehicle sales, they contribute nearly 35% of passenger kilometres driven.
"From an environmental return-on-investment perspective, this is where government support delivers the biggest impact," said Chandra.
Prior to the PM e-Drive scheme which took effect from October 2024, e-cars in the fleet segment were getting subsidies of ₹10,000 per kWh, capped at ₹1.5 lakhs.
The top executive's comments come amid a mixed but ultimately strong 2025 for Tata Motors.
The year, according to Chandra, had "two unequal halves", with the first eight months under pressure till the GST cuts, which took effect on September 22, and demand improving sharply from November onwards.
The passenger vehicle industry ended the year with about 5-6% increase in wholesales or factory dispatches, while registrations or retail sales grew at a faster 9-10%. Tata Motors outpaced the industry growth, exiting the December quarter as the second-largest in the market.
Earlier in the day, the company introduced a facelift of its Punch micro-SUV, priced at ₹5.59 lakh to ₹9.29 lakh. It expects the refreshed model to help surpass the SUV's previous sales peak seen in 2024. Introduced in October 2021, the Punch has been Tata's volume driver. It became India's highest-selling car in calendar 2024, selling over 202,029 units. Sales in 2025 stood at around 170,000 units. The electric variant of the Punch accounted for 9% of the vehicle's total sales.
Looking ahead, Chandra said 2026 will see "significant launch activity", following an intense rollout phase that began in late 2025 with new models such as the Sierra, and the Harrier and Safari updates, supported by phased capacity expansion starting in the April quarter.
More than half of India's car buyers are below the ₹10 lakh mark, a segment where the Tata Group automotive flagship sells the Tiago and Tigor electric cars. "If EVs have to go mainstream, this is the segment that must click," Chandra said on Tuesday, pointing out that in small cars, battery costs can account for nearly 70% of the vehicle price while customers still expect a real-world range of over 400 km.
Recent changes in goods and services tax (GST) have further pushed the price parity out of reach for entry-level EVs, he said.
India's electric car market leader wants the Centre to reintroduce incentives on such eco-friendly vehicles used in the fleet segment. He said while fleet vehicles make up only 7-8% of passenger vehicle sales, they contribute nearly 35% of passenger kilometres driven.
"From an environmental return-on-investment perspective, this is where government support delivers the biggest impact," said Chandra.
Prior to the PM e-Drive scheme which took effect from October 2024, e-cars in the fleet segment were getting subsidies of ₹10,000 per kWh, capped at ₹1.5 lakhs.
The top executive's comments come amid a mixed but ultimately strong 2025 for Tata Motors.
The year, according to Chandra, had "two unequal halves", with the first eight months under pressure till the GST cuts, which took effect on September 22, and demand improving sharply from November onwards.
The passenger vehicle industry ended the year with about 5-6% increase in wholesales or factory dispatches, while registrations or retail sales grew at a faster 9-10%. Tata Motors outpaced the industry growth, exiting the December quarter as the second-largest in the market.
Earlier in the day, the company introduced a facelift of its Punch micro-SUV, priced at ₹5.59 lakh to ₹9.29 lakh. It expects the refreshed model to help surpass the SUV's previous sales peak seen in 2024. Introduced in October 2021, the Punch has been Tata's volume driver. It became India's highest-selling car in calendar 2024, selling over 202,029 units. Sales in 2025 stood at around 170,000 units. The electric variant of the Punch accounted for 9% of the vehicle's total sales.
Looking ahead, Chandra said 2026 will see "significant launch activity", following an intense rollout phase that began in late 2025 with new models such as the Sierra, and the Harrier and Safari updates, supported by phased capacity expansion starting in the April quarter.