As the Union Budget 2026 approaches, Tata Motors has urged the government to consider targeted fiscal support for entry-level electric vehicles (EVs) and to extend incentives to electric cars used in the fleet segment under the PM E-DRIVE scheme, citing mounting affordability pressures at the lower end of the EV market.
In an interaction with PTI, Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra said that a series of policy interventions–ranging from GST reforms to repo rate cuts and changes in the tax regime–have helped revive demand in the broader passenger vehicle (PV) market. However, he cautioned that entry-level EVs continue to struggle amid shifting price dynamics.
“I would like to really appreciate the government for reviving the PV industry and the electric vehicle side as well. Two things which can be considered (in the Budget). One there is a lot of pressure on the entry segment on the EV side and if the government would like to consider some level of incentives,” Chandra said.
According to him, recent GST reforms have lowered prices of petrol-powered cars, intensifying competitive pressure on entry-level EVs and affecting their value proposition to spruce up the demand for the overall PV industry.
(Soure Economic Times)