Tata Motors Urges Government for Renewed EV Subsidies

Tata Motors' CFO PB Balaji advocates for continued government incentives for electric passenger vehicles in the commercial fleet segment, following a noted decline in sales after the FAME II scheme concluded. Balaji emphasizes the importance of total cost of ownership and hopes for government reconsideration.

Tata Motors is urging the government to reconsider subsidies for electric passenger vehicles used in commercial fleets, following a sharp decline in sales after the FAME II scheme ended earlier this year, according to the company's CFO, PB Balaji.

The discontinuation of subsidies impacted the fleet segment significantly, Balaji noted, as incentives under the FAME II scheme, concluded in March 2024, were critical in keeping costs manageable for fleet operators. While the government introduced new schemes, the commercial fleet sector continues to face challenges.

Despite these hurdles, Tata Motors remains committed to expanding its electric vehicle offerings, recently launching models like the Curvv EV, while focusing on developing the EV ecosystem and attracting a new class of customers.

(With inputs from agencies.)