Push for targeted incentives in entry-level EV segment
Tata Motors CEO Shailesh Chandra has urged the Indian government to extend financial support and incentives for electric cars priced under ₹10 lakh, stating that the segment is essential for mass-market EV adoption. According to Chandra, affordability continues to be the central challenge for EVs in this price bracket because battery costs can form up to 70 % of the vehicle price, while buyers still expect real-world ranges of over 400 km.
More than half of Indian car buyers shop in the sub-₹10 lakh range, and Tata’s own Tiago EV and Tigor EV sit within or close to this segment. Chandra pointed out that recent GST changes and shifts in subsidy structures have pushed price parity further out of reach, making targeted government support necessary to bridge the gap between electric and internal-combustion alternatives.
Environmental impact and fleet incentives
Chandra also highlighted the importance of continued incentives for EVs in the fleet segment, which while contributing only about 7-8 % of passenger vehicle sales accounts for nearly 35 % of passenger kilometres driven in India. He suggested that reintroducing such support could deliver significant environmental return-on-investment by accelerating electrification where it yields the largest utilisation impact.
The Tata Motors CEO’s comments come against a backdrop of mixed but ultimately strong 2025 industry performance, where Tata has continued to outpace broader growth trends and remains focused on significant 2026 model launches and capacity expansions.
