Tata Motors’ electric vehicle (EV) arm, Tata Passenger Electric Mobility Ltd, on Wednesday attributed the slowdown in sales of four-wheel EVs to the government’s scrapping of Faster Adoption and Manufacturing of Electric Vehicles-II (FAME-II) scheme, which ended on March 31, compelling fleet operators to make frequent changes in their purchase plans.
Many buyers are eagerly waiting for the FAME-III scheme to become operational.
Data obtained from the Federation of Automobile Dealers Associations (FADA) showed that sales of EVs reported a year-on-year dip between May and July.
In May, the drop was 1.2 per cent over the corresponding month last year. In June, the year-on-year decline was much sharper at 13.5 per cent and in July the slowdown was 2.9 per cent, as compared to a similar period in 2023.
"...the de-growth in EVs is largely due to the fleet segment, which used to contribute 20 per cent to this category. Ahead of the scrapping of FAME-II, many buyers changed their purchase plans and are now waiting for FAME-III to become operational. The electric mobility promotion scheme, 2024, an interim policy, did not include EV four-wheelers. This has created a void,” Vivek Srivatsa, chief commercial officer of Tata Passenger Electric Mobility Ltd, told Moneycontrol.
Srivatsa is all for the announcement of the FAME-III scheme “as soon as possible” in keeping with the government’s mega push towards electric mobility.
He underlined a silver lining amid the flat growth curve. Registrations for personal vehicles in the EV category continue to maintain a steady pace, the senior Tata executive pointed out.
Srivatsa held out hope for the recovery in both EV and conventional internal combustion engine car sales.
There is likely to be an uptick in demand on the back of a good monsoon and the upcoming festive season, he reasoned.
Srivatsa made these observations while speaking on the sidelines of the launch of Tata Curvv, which has been positioned as a sports utility vehicle “[SUV] coupe”, on Wednesday.
Curvv comes in two main variants, depending on its battery sizes. The vehicles have been priced between Rs 17.49 lakh and Rs 21.99 lakh.
Srivatsa allayed the misgivings regarding potential cannibalisation of sales because some variants of Curvv are priced closer to the company’s other EV offerings such as Nexon.
“It (cannibalisation) is bound to happen. You cannot have watertight categories. In internal combustion engine vehicles, there is a lot of overlap in every manufacturer. Fragmentation is the way forward. As categories grow, there are bound to be overlaps. At the same time, there is a clearer definition of consumer needs. We are not worried about overlap as long as our overall numbers grow,” he said.
On Wednesday, the company also unveiled the conventional internal combustion engine version of Curvv, which is available in both petrol and diesel variants.
The bookings for this conventional model of SUV coupe begin in September, when the variants’ prices will also be made public.
Customers can start booking for the EV variant of Curvv from August 12 and the initial deliveries are likely to start from August 20 onwards.
Asked about the challenges to meet demand for a booking frenzy of new launches for both EVs and conventional four-wheelers, Srivatsa said the company is well-equipped to cater to its customers, contrary to a prevailing trend, where waiting time for deliveries could run up to more than a year.
"You really have to see the authenticity of (those) bookings, because on one side, discounts are being offered, and on the other side, there are waiting lists,” he quipped.
Tata Motors has kept exports of EVs to a bare minimum, and, as of now, is largely restricted to Nepal.
Srivatsa said that while the company sees a major export opportunity across various markets, the correct timing and the product would be key factors behind any such expansion plans.
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