Tata Motors Seeks EV Charging Infra Boost From Budget 2024

Tata Motors Ltd. is hopeful of a budget that ensures policy continuity for the nascent electric-vehicle ecosystem in the world's third largest automotive market.

A good place to begin would be the charging infrastructure, Sailesh Chandra, managing director for Tata Motors' passenger vehicles and EV businesses, told NDTV Profit after a media roundtable on Wednesday.

Chandra said the Union government had been supportive of accelerating electric mobility in India, with myriad schemes—from subsidies (FAME-II) to manufacturing incentives (Auto PLI) and tax breaks (5% goods and services tax on EVs)—spurring adoption of electric vehicles in India. The product—be it on two, three or four-wheelers—has been well accepted anyway.

What is lagging, however, is public charging infrastructure, which would go a long way in allaying range anxiety among customers.

"The electric vehicle, compared to any other powertrain, is much superior—in terms of the driveability, running cost and maintenance. It is only the charging infrastructure that is the key bottleneck," Chandra said.

"So, a greater thrust, not just from oil marketing companies but also private players, will go a long way. There are a lot of roadblocks, like installation at homes and along highways… I think if we can sort out these issues, it will be helpful going forward," he said.

Tata Motors has partnered with EV charging operators and manufacturers, as well as OMCs to set up EV charging stations along major roads of the country.

At present, there are about 12,000 EV charging points in India, or one for every 135 EVs. That penetration ratio stands at 1:20 globally. The government wants EVs to comprise 30% of new vehicle sales by 2030. India will require 39 lakh EV charging stations by then.

Chandra also acknowledged the impact of subsidy on early adoption and batted for a FAME-III scheme to sustain the momentum.

"The government has been very crystal clear and supportive of accelerated penetration of electric mobility in the country. We have the entire schemes such as GST and PLI," Chandra said.

"So, what we would expect (in the budget) is that the policy continues till this industry becomes self-sufficient," Chandra said. "The subsidy and low GST rates should continue till the industry reaches 15–20% penetration levels." At present, electric vehicles make up 5% of the two-wheeler industry, and 2% of all cars.