Budget 2026: The country’s leading automobile company Tata Motors has sought incentives from the government to promote entry-level electric vehicles (EVs) in the upcoming budget. Along with this, the company has also urged the government to consider supporting electric cars used in fleet operations under the PM E-DRIVE scheme. The company says that even though the passenger vehicle (PV) market is showing recovery, the affordable EV segment is still under pressure.
Speaking to news agency PTI, Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra said that the government’s recent steps have supported demand in the auto sector, but the situation for entry-level EVs still remains challenging.
He said, “I would like to appreciate the government that it has taken several important steps to revive the PV industry and electric vehicle sector. But two things can be considered in the budget. First, there is a lot of pressure on the entry-level EV segment and it can be relieved if the government considers giving some level of incentives.”
Shailesh Chandra said that after the GST reforms, the prices of petrol cars have come down, which has further increased the competition pressure on entry-level electric cars. He said, “The government has taken many big steps in the last year. The biggest step has been GST 2.0. Apart from this, decisions like cut in repo rate, change in tax regime have also been taken. Overall, the government has taken important interventions to increase demand in the entire PV sector.”
Demand to support fleet EV again
Underlining the importance of the fleet segment, Shailesh Chandra said that even though EVs used in fleets constitute only 7% of total passenger vehicle sales, they cover about 33–35% of total passenger kilometers traveled. He informed that earlier fleet EVs were supported under FAME-II, but these have not been included in the current PM E-DRIVE scheme.
He said, “A fleet car lasts about five times longer than a normal passenger car. So if this segment is supported, it has a multiplier effect on the environment. Be it reduction in particulate matter, zero emissions or reduction in oil imports. This is the same segment which was identified in the FAME scheme and the government can consider including it in the PM E-DRIVE.”
Impact may also be seen on prices
On the question regarding prices, Shailesh Chandra said that rising commodity prices and pressures related to foreign exchange have affected the company’s margins. According to him, these factors have impacted revenues by about 2%, a major part of which has not yet been transferred to customers.
He said, “We have been successful in cutting costs to some level, but in the coming days we will decide when and by how much to increase the prices. It will be announced soon.”
Let us tell you that in recent weeks, many other automobile companies have also announced to increase the prices of vehicles citing input cost and currency related pressures.
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