Tata Motors top executive has once again called on the Indian government to extend targeted financial support for electric vehicles (EVs) priced under ₹10 lakh, stressing that this affordable segment is crucial for mainstream EV adoption nationwide. Shailesh Chandra, Managing Director and CEO of Tata Passenger Vehicles, underlined the need for policy action to bridge the cost gap that keeps many buyers away from electric cars.
In remarks on Wednesday, Chandra pointed out that structural cost challenges particularly high battery costs continue to make entry-level EVs more expensive than comparable petrol and diesel cars. He noted that battery systems alone can account for up to 70 % of the price of small electric cars, while buyers still expect a practical driving range, often above 400 km.
According to the Tata Motors CEO, more than half of all car buyers in India fall into the sub-₹10 lakh bracket, where vehicles like the Tiago EV and Tigor EV are positioned. Recent changes in the goods and services tax (GST) have widened the cost gap between EVs and internal combustion engine vehicles, making affordability an even steeper hurdle. Chandra said this trend must be addressed if EVs are to become truly mainstream.
Chandra also urged the Centre to reintroduce or extend incentives for EVs in the fleet segment, where eco-friendly vehicles contribute significantly to passenger kilometres travelled. While fleet vehicles make up only about 7–8 % of total passenger vehicle sales, they account for nearly 35 % of passenger travel, offering a greater environmental impact per incentive rupee, he explained.
The CEO’s remarks come against a backdrop of mixed yet resilient performance for Tata Motors in 2025, with demand strengthening after mid-year GST reductions and strong customer interest toward the company’s EV portfolio. Tata Motors remains one of the leading electric car manufacturers in India, with a growing lineup aimed at various segments.
Industry observers say broader support for entry-level EVs could accelerate India’s transition to sustainable mobility by making electric cars more accessible for mass buyers. With evolving consumer expectations and competitive pressures, Tata Motors and other domestic OEMs are pushing for policy clarity to support the next stage of EV adoption in India.
