Tata Motors Urges Government Subsidies for Affordable Electric Cars

• Tata Passenger Vehicles MD Shailesh Chandra advocates for government subsidies on electric vehicles priced under Rs. 10 lakh to boost mass adoption in India.
• Over half of Indian car buyers are in the sub-Rs. 10 lakh segment, making it crucial for EV mainstreaming, with Tata Motors offering Tiago EV and Tigor EV in this range.
• High battery cost, accounting for nearly 70% of a small car's total price, and consumer demand for over 400 km range are major challenges for affordable EVs.
• Chandra calls for reintroduction of incentives for fleet electric vehicles, citing their significant environmental impact despite comprising a small percentage of sales.
• Tata Motors outperformed the industry in 2025, becoming India's second-largest passenger vehicle maker, and launched the facelifted Punch micro-SUV, its biggest volume driver.

Why It Matters: Government subsidies are essential for making electric cars affordable and driving mass adoption in India's key sub-Rs. 10 lakh segment.