Tata Motors’ EV Sales Down 21% In July 2024; Marks Fourth Consecutive Month Of Dropping EV Sales

For the fourth month on the trot, Tata Motors witnessed sales of its battery electric vehicles (EVs) drop once again, in the month of July. In its sales report, Tata Motors said it sold 5,027 EVs in July, which is a reduction of 21 per cent compared to its sales figures for July 2023 (6,329 units). This follows Tata witnessing its lowest EV sales in an 18-month period in June, and its July figures are only a 7.9 per cent increase over last month’s EV sales.

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In a statement issued in June, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., had then attributed the decline in sales to a notable drop in demand from commercial EV buyers after the FAME-II subsidy scheme concluded. He also hinted at a broader slowdown in EV adoption across the industry.

Tata Motors' EV sales have dropped year-on-year for the last four months.

Currently, Tata Motors offers five EV models – the Tiago EV, Tigor EV, Punch EV, Nexon EV, and the fleet-only Xpres-T EV. The Xpres-T previously qualified for a subsidy of up to Rs 2.15 lakh under the FAME-II scheme, but with the scheme’s conclusion in March, commercial-use passenger EVs are no longer eligible for any incentives.

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The Electric Mobility Promotion Scheme (EMPS), a temporary initiative, provides subsidies only for electric two- and three-wheelers. It remains uncertain whether the rumoured FAME-III scheme, reportedly in development with a budget of Rs 10,000 crore, will offer incentives for passenger EVs.

Tata Motors’ EV lineup will expand soon, with the launch of Tata Curvv EV slated for August 7. The Curvv is expected to be followed by the Harrier EV later in FY2025. This will be followed by the Sierra EV and the debut model from Tata’s ultra-premium ‘Avinya’ series of EVs.