The company has over 4,300 ACE EVs on Indian roads, with 16 million kilometers driven and strong repeat purchase orders.
Tata Motors, India’s leading commercial vehicle manufacturer, is shifting its EV strategy to focus on generating demand independently of government incentives, as announced by Girish Wagh, Executive Director, during a post-earnings call.
This change comes after the expiration of FAME 2, a significant government program promoting EV adoption, in March 2024. To address the gap, Tata Motors introduced a new 1-tonne variant of its ACE electric small commercial vehicle (SCV), which, despite being 17% more expensive than the previous 600 kg FAME-subsidized model, offers a 30% improvement in Total Cost of Ownership (TCO) for customers.
Wagh highlighted Tata Motors’ proactive approach, stating that the company had been preparing for the post-FAME environment and had launched an exciting range of products.
Tata Motors has over 4,300 ACE EVs on Indian roads, accumulating 16 million kilometres and achieving high repeat purchase orders. In addition, the company leads in electric buses, deploying over 1,700 units in FY24, bringing its total fleet to 2,600, which have collectively covered over 140 million kilometres.
Looking forward, Wagh expressed confidence in the payment security mechanism for electric buses and mentioned ongoing engagement with government agencies. He also hinted at potential participation in future tenders with a focus on an asset-light business model aimed at operational efficiency.
These comments indicate Tata Motors’ strategic shift towards building a sustainable EV business model independent of government subsidies, emphasizing TCO and exploring asset-light options, showing confidence in the long-term viability of its electric vehicle portfolio.
