Tata Motors, M&M, Maruti shares decline as Budget 2024 skips EV, hybrid emphasis

Tata Motors and Mahindra & Mahindra are major players in the industry. The proponents of EVs argued that shifting focus away from EVs could have possibly slowed India's progress toward its climate goals and stifled its growth.

Data from the Society of Manufacturers of Electric Vehicles (SMEV) showed that total four-wheeler EV sales stood at 90,432 units in FY24, a mammoth 90.3 percent rise from FY 23 where total sales stood at 47,499. SMEV is a registered association representing Indian manufacturers of electric vehicles and electric vehicle components. It works closely with central and state governments to assist in formulating policies and processes to support the EV ecosystem.

There were also expectations that the Modi 3.0 government could deliver something on hybrid vehicles. However, that wasn't the case. Shares of Maruti Suzuki, which is the only listed player manufacturing hybrid cars, slipped 2 percent to Rs 12,400.

Given the lack of charging infrastructure in the country, proponents of hybrid vehicles say it is a solid alternative. Hybrid vehicles are currently taxed at 28 percent under GST, there was speculation that the tax rate could be reduced to make it more affordable.

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