Tata Motors is requesting a three-year extension on incentives for e-taxis.

Tata Motors is urging the government of New Delhi to promote the adoption of electric vehicles (EVs) until they constitute at least one-fifth of all newly sold cars. The company is seeking an extension of incentives for electric taxis for another three years, along with the inclusion of personal vehicles in the government's flagship support program, FAME. With a market share exceeding 70% in the local electric vehicle market, Tata Motors is emphasising the need for an enabling environment similar to Beijing's commitment to drive EV adoption. Shailesh Chandra, managing director of Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles, highlighted the ongoing support for EV adoption in major economies like China and Germany until achieving at least a 20% adoption rate. He cited the recommendation from the Parliamentary Standing Committee on Industry in 2023 to extend FAME by at least three years to make the scheme more inclusive. Additionally, Tata Motors is calling for continued support for electric taxis with an incentive of INR 10,000 per kWh battery size for the next three years. Chandra emphasised the importance of utilising remaining funds from FAME II to support shared four-wheeler mobility goals. The company believes that with sustained FAME subsidies and supportive policies, India can accelerate EV adoption to combat urban air pollution and achieve national objectives such as net zero emissions, energy independence, and economic growth. While the second phase of FAME-II is set to conclude on March 31, the Centre has granted a temporary four-month extension, requiring an additional outlay of INR 500 crore. Introduced in 2019 with a total budget of INR 10,000 crore, FAME-II aims to support EV adoption in India. Tata Motors, which has become a leader in the domestic electric vehicle market, plans to expand its EV offerings with upcoming models such as the Harrier EV and Curvy EV. The company aims to increase its EV sales to 25% by 2027 and 50% by the end of the decade. With the Indian EV market growing rapidly, major players like Tesla, Audi, and Mercedes-Benz are positioning themselves to capitalise on opportunities in this sector. According to Vahan data, EV registrations in India across vehicle categories witnessed a year-on-year increase of over 36% in November 2023, totaling 1,43,325 units.