Over the last four years, Tata Motors has established itself as a clear leader in India’s fast-evolving passenger electric vehicle (EV) market, but its momentum appears to finally be slowing. June witnessed the lowest number of Tata EVs being dispatched to dealers, with just 4,657 vehicles being shipped. This is the lowest EV sales figure Tata Motors has recorded since January 2023 (4,133 units), representing a 34 per cent drop over the same period last year (June 2023: 7,025 units) and also marking the third consecutive month of a year-on-year drop in EV sales.
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In a statement, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd, attributed the drop in sales to a significant decline in demand from commercial-use EV buyers following the conclusion of the FAME-II subsidy scheme. He also hinted at a general slowdown in EV uptake, referring to a “broader industry trend”.
The fleet-only Xpres-T EV previously qualified for a Rs 2.15 lakh incentive under the FAME-II scheme.
“The electric vehicle industry was affected by the broader industry trend and the impact of significant preponement fleet sales in Q4FY24, due to expiry of FAME II subsidy in March 2024. Consequently, while the personal segment retails have grown slightly, there was a sharp decline witnessed in the fleet segment, which is expected to recover in the coming quarters”, said Chandra.
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At present, Tata Motors has five EVs in its portfolio – the Tiago EV, Tigor EV, Punch EV, Nexon EV and the fleet-only Xpres-T EV. Under the FAME-II subsidy scheme, the Xpres-T was eligible for a subsidy of as high as Rs 2.15 lakh, but since the scheme ended in March, commercial-use passenger EVs do not qualify for any incentives whatsoever. Even subsidies the Electric Mobility Promotion Scheme (EMPS) introduced as a short-term initiative are only available to electric two- and three-wheelers. It remains to be seen if the rumoured FAME-III scheme – reported to be in the works with an outlay of Rs 10,000 crore – will extend any incentives to passenger EVs.
The Curvv will join Tata Motors' EV lineup in the coming months.
Tata Motors’ EV lineup is set to grow in the coming months. The first one to join the portfolio will be the Tata Curvv EV, followed by the Harrier EV later in FY2025. These will be followed by the Sierra EV and the first model from Tata’s ultra-premium ‘Avinya’ series of EVs.
