Tata Motors Group CFO hopes for incentives by GOV for e-passenger vehicles

Following the sharp slowdown in electric passenger vehicles after the withdrawal of state support, Tata Motor is hoping for government incentives for electric passenger vehicles operating in the commercial segment, citing CFO PB Balaji PTI reported on Friday.

Earlier, e-four-wheeler passenger vehicles in the commercial segment were available at a subsidised rate under the FAME-II scheme which ended on Mar. 31, 2024. 

The subsidy ended with the implication of the Electric Mobility Promotion Scheme (EMPS) 2024, following which the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) was introduced. The PM E-DRIVE was introduced in Sept. with an outlay of Rs 10,900cr for two years. 

"Fundamentally it impacts the fleet segment, where we are seeing a sharp slowdown in that segment," citing Balaji, PTI further reported.

He was answering the question of how the withdrawal of government support from electric passenger vehicles has impacted its sales.

According to him, the e-passenger vehicles in the commercial segment account for 15% of the total EV industry's portfolio

Further, Balaji stated that he expects that the FAME incentives (for electric passenger vehicles) for the public segment will be considered by the government. He said that they are continuing to work to guarantee that the fleet operator receives the appropriate TCO (total cost of ownership) proposal. 

"Tata Motors had a higher indexation on the fleet sales in EVs because for them (fleet operators), TCO is a very important factor in their thought process" and the FAME incentive was serving on that particular front, citing Balaji, the report added.

According to him, the FAME subsidy ensures electric mobility, at a lower price and this is what has been impacted after the withdrawal of the subsidy.

Therefore there was a slowdown there, he said, adding, "One would expect the proportion of EVs coming (down) and CNG is also getting much more prominent in that (fleet) segment, in any case".