Tata Motors has asked the government to provide the special incentives for entry level electric vehicles EVs in the Union budget 2026-27. The company also wants more support for commercial electric cars under the PM E-Drive Scheme. The motors passenger vehicles managing director and CEO Shailesh Chandra said that steps like GST Reforms, repo rate cuts, and changes in the tax system have helped revive demand in the passenger vehicle market. However, he added that entry-level EVs are still facing sales challenges and need targeted policy support to boost affordability and wider adoption.
What Shailesh Chandra Said?
Shailesh Chandra said that he appreciates the government’s efforts to boost the passenger vehicle and electric vehicle industry. He added that the upcoming budget should focus on two key issues-the growing pressure on entry level electric cars and whether the government can offer incentives to support this segment. Chandra explained that after GST reforms, petrol car prices have come down, increasing competition for affordable EVs. He also noted that steps such as GST 2.0 and repo rate cuts taken last year have helped improve overall demand in the passenger vehicle market.
Shailesh Chandra said that electric vehicles used in the commercial sector make up only 7 percent of total passenger vehicle sales, But contribute nearly 33-35 percent of total passenger kilometers. he explained that commercial electric cars were earlier covered under the FAME-2 Scheme but have been included in the PM E-Drive scheme. Chandra pointed out that a commercial cars run nearly five times more than a private passenger vehicle. Therefore, supporting this segment can bring strong environmental benefits and help reduce oil imports. He suggested that the government should consider including commercial EVs under PM E-Drive.
Mercedes-Benz India Managing Director and CEO Santosh iyer said that Rationalising customs duty on imported luxury cars would boost demand in the premium segment and also increase the government’s overall tax revenue. He added that a more stable macroeconomic policy and better fiscal management are needed to control the ongoing fall in the rupee. Iyer explained that rising input and operational costs have forced luxury car makers to increase prices, which has affected customers demand. He said supportive policy measures could help stabilise the market and encourage growth in India’s Luxury automobile segment.
