Tata Motors expects EV sales to rev up again in H2

Tata Motors expects EV sales to bounce back in the second half of the current year, riding on festive season sales, new models and clarity on the government subsidy scheme for the fleet segment, a top company executive told ET.

Shailesh Chandra, managing director, Tata Motors Passenger Vehicle and Passenger Electric Mobility, said the drop in EV sales in the recent months shouldn't be singled out and be seen in the context of a broader slowdown.

"Every segment drops if the market drops. Even hybrids have dropped. Why single out EVs? Our enquiries have remained strong. If sanity comes, and people stop rubbishing EV, an EV buyer will buy and not get confused. People have done a lot to confuse the buyers," he said.


Passenger vehicle sales are estimated to have fallen around 2.5% YoY in July to 344,000-345,900 units, for the first time in two-and-a-half years, according to monthly sales data released by manufacturers on August 1. Sales dropped as automakers curtailed dispatches amid sluggish demand and high dealer inventory after a two-year post-pandemic boom.

The maker of Nexon.ev and Tiago.ev models launched the Curvv.ev - its fifth EV offering on Wednesday. The prices of the SUV coupe start from ₹17.49 lakh for the 45kWh battery and at ₹19.25 lakh for the 55kWh battery, going up to ₹22 lakh.

By pricing it lower than the comparable automatic transmission variant of petrol-powered mid-size SUV, Tata Motors is looking to woo petrol buyers of mid-size SUVs. The comparable Hyundai Creta (automatic) is priced at ₹18.83 lakh.

The pricing of the company is "boldly bringing price parity between EVs and equivalent ICE vehicles," Chandra said. The pricing addresses one of the biggest barriers in EV adoption.

EV sales in India have entered a slow lane after a fast-paced growth. E-car registrations dropped 2.92% to 7541 units in July, amid slow adoption among buyers, among other factors. Tata Motors control almost 68% of the segment.

Chandra also attributed the drop in Tata EV sales to discontinuation of the FAME II (Faster Adoption and manufacturing of electric vehicles) scheme from April 1. Fleet sales account for 20% of the company's EV sales. The government subsidy has a crucial role to play to ensure they (e-cars in the fleet segment) cross the hump. The handholding in this phase will ensure they get greater confidence, he added.

The fleet segment accounts for 30,000 to 40,000 cars sold per month (for the industry) and at least 20% of it should be electric before the government pulls out the subsidy, he said.