Tata Motors has urged the government to introduce targeted financial incentives for entry-level electric vehicles (EVs) in the upcoming Union Budget, highlighting growing affordability challenges and intensifying competition from conventional petrol models.
The company said policy support for lower-priced electric cars is crucial to sustaining demand in the mass-market segment, where cost sensitivity remains a major barrier to adoption. Tata Motors noted that recent tax adjustments and broader economic measures have helped revive passenger vehicle sales overall, but entry-level EVs continue to struggle with price competitiveness.
In addition, the automaker has called for the inclusion of fleet-operated electric vehicles under the government’s PM E-DRIVE incentive framework. Tata Motors pointed out that fleet vehicles, despite accounting for a relatively small share of total passenger vehicle sales, contribute a significantly higher proportion of passenger travel activity across urban and intercity routes.
According to the company, extending incentives to fleet EVs could deliver disproportionate environmental benefits by reducing emissions and lowering dependence on imported fuel, given their high daily utilization compared with privately owned vehicles.
Tata Motors also highlighted that entry-level EVs play a critical role in accelerating mass adoption of electric mobility, particularly among first-time buyers. Continued policy backing, the company said, will be essential to ensure price parity with internal combustion engine vehicles and support India’s broader transition toward cleaner transportation.
The automaker added that it is closely monitoring cost pressures arising from currency fluctuations and commodity prices, and will evaluate pricing strategies based on market conditions going forward.
