Tata Motors has been a leading player in India’s growing electric vehicle (EV) market for the past four years. However, recently, its growth has started to slow down.
In June, Tata Motors sold a total of 43,624 vehicles, including EVs, which is 8% less compared to the same month last year.
With reported sales of 4,657 EVs in June, the automaker recorded its lowest EV sales since January 2023 (4,133 units). This marks a 34% decline compared to June 2023, when they sold 7,025 units. Also, it marks the third month in a row where EV sales have dropped compared to the same month the previous year.
During the April-June quarter, Tata Motors sold a total of 1,38,682 passenger vehicles, marking a 1% decline compared to the same period last year. Moreover, EV sales in this quarter decreased by 14% to 16,579 units.
Tata Motors linked the sluggish sales to the general elections, heat waves, and the conclusion of the FAME-II subsidy scheme.
Tata Motors’ Existing and Future EVs
Currently, Tata Motors offers five electric vehicles:
- Tiago EV (₹ 7.99 Lakh)
- Tigor EV (₹ 13.75 Lakh)
- Punch EV (₹ 10.99 Lakh)
- Nexon EV (₹ 14.49 Lakh)
- Xpres-T EV (₹ 13.04 Lakh)
Note that these are ex-showroom and starting Tata EV car price of the EVs.
The Xpres-T EV, which is available only for fleet service, used to qualify for a subsidy of up to Rs 2.15 lakh under the FAME-II scheme. However, as of March, commercial-use passenger EVs no longer qualify for incentives under the scheme.
Tata Motors plans to expand its EV lineup in the upcoming months. The first new addition will be the Tata Curvv EV, followed later in FY2025 by the Harrier EV. Next in line are the Sierra EV and the debut model from Tata’s luxurious Avinya series of EVs.
Tata Motors Market Outlook
The Electric Mobility Promotion Scheme (EMPS), introduced as a temporary measure, only provides subsidies to electric two- and three-wheelers. Furthermore, it’s uncertain whether the FAME-III scheme, reportedly under consideration with a budget of Rs 10,000 crore, will offer any incentives to passenger EVs.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.
“Going forward, we foresee recovery of demand, as enquiries have remained strong despite low retails in the past two months.”
Tata Motors stated that in the future they anticipate an increase in vehicle demand. That’s due to expectations of a good monsoon, continuity in government policies, and ongoing government projects focusing on infrastructure development.
