Tata Motors CEO Seeks Govt Support for Electric Vehicles Under ₹10 Lakh

As per Economic Times report, Tata Motors CEO Shailesh Chandra has called on the government to renew incentives for electric vehicles priced below ₹10 lakh, highlighting structural cost challenges hindering mass adoption in the segment. 

Government Incentives Needed for Sub-₹10 Lakh EVs 

Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, stated that electric cars under ₹10 lakh are essential for mass scale adoption in India.  

These vehicles, including the Tata Tiago and Tigor EVs, form a major portion of the market as over 50% of car buyers fall in this price bracket. However, due to high battery costs contributing nearly 70% to the total vehicle price in small EVs, affordability remains a key issue. 

After recent changes in Goods and Services Tax structure, the affordability gap widened, making buyer adoption more difficult. Chandra emphasised that unless targeted government support returns, it would be difficult to bridge this gap and grow the segment. 

Fleet Segment a Key Area for Environment Gains 

Chandra also highlighted the role of fleet-based EVs in environmental contribution. While fleet sales represent only 7% to 8% of total passenger vehicle sales, they account for 35% of passenger kilometres driven.  

This makes them significant from an environmental return-on-investment perspective. Previously, under the PM e-Drive scheme (effective from October 2024), such vehicles qualified for incentives of ₹10,000 per kWh, capped at ₹1.5 lakh per vehicle. 

Tata Motors' 2025 Performance and Product Strategy 

In 2025, Tata Motors saw uneven performance, with pressure in the first 8 months until the GST reductions, which became effective on September 22. Following this, demand saw a strong recovery in November and December.  

The overall passenger vehicle industry grew by 5% to 6% in wholesales and 9% to 10% in retail sales. Tata Motors outpaced industry growth, closing the year as the second-largest passenger carmaker. 

Read More: Tata Motors Subsidiary Acquires 26% Stake in Traveltime E-Mobility! 

Punch Micro-SUV and Sales Data 

The company launched a facelift of the Punch micro-SUV, priced from ₹5.59 lakh to ₹9.29 lakh. Originally introduced in October 2021, the Punch emerged as Tata's volume model and became India's top-selling car in 2024 with 2,02,029 units sold. In 2025, total sales were around 1,70,000 units, with the electric variant contributing 9% of the volume. 

Tata Motors Passenger Vehicles Share Price Performance  

As of January 14, 2026, at 9:23 AM, Tata Motors Passenger Vehicles share price on NSE was trading at ₹351.80 up by 0.59% from the previous closing price.  

Conclusion 

Tata Motors has stressed the importance of reinstating incentives for EVs in the under ₹10 lakh category, especially in fleet operations. With high battery costs and consumer expectations for performance, support mechanisms are crucial for sustainable growth in this space. 

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