Tata Motors is banking on the upcoming FAME-III scheme and the festive season to invigorate its electric vehicle (EV) sales. Vivek Srivatsa, Chief Commercial Officer of Tata Passenger Electric Mobility Ltd, has urged for the prompt announcement of the FAME-III scheme, which he believes is crucial for reviving the current slowdown in four-wheel EV sales.

The end of the Faster Adoption and Manufacturing of Electric Vehicles-II (FAME-II) scheme on March 31 has been a key factor in the recent decline in EV sales, as noted by Tata Motors. This has led to uncertainty and frequent changes in purchase plans among fleet operators. According to data from the Federation of Automobile Dealers Associations (FADA), EV sales saw a year-on-year dip between May and July, with May experiencing a 1.2% drop, June seeing a sharper 13.5% decline, and July recording a 2.9% decrease compared to the same months in the previous year.

Srivatsa highlighted that the reduction in EV sales is predominantly due to the fleet segment, which previously contributed 20% to the overall EV market. The void left by the cessation of the FAME-II scheme has led many buyers to delay their purchases in anticipation of the new FAME-III scheme. The interim policy, which does not cover four-wheel EVs, has exacerbated this issue.

Despite the slowdown, Srivatsa remains optimistic, noting that personal EV registrations continue to show steady growth. He expects a rebound in both EV and traditional internal combustion engine (ICE) car sales, driven by a favorable monsoon and the upcoming festive season.

In a related development, Tata Motors launched its Tata Curvv, a new SUV coupe, priced between Rs 17.49 lakh and Rs 21.99 lakh. Srivatsa addressed concerns about potential sales cannibalization between the Curvv and other Tata EVs, such as the Nexon, suggesting that some overlap is inevitable. He emphasized that the focus is on overall sales growth rather than individual model competition.

Alongside the EV variant, Tata Motors also introduced a conventional ICE version of the Curvv, available in petrol and diesel variants. Bookings for this model will commence in September, with prices to be announced then. The EV variant will start accepting bookings from August 12, with initial deliveries expected to begin on August 20.

Regarding the challenge of meeting high demand for both EV and ICE models, Srivatsa assured that Tata Motors is well-prepared to handle customer expectations, despite the current trend of extended delivery times. He cautioned against the authenticity of booking data, given the simultaneous offering of discounts and lengthy waitlists.

Currently, Tata Motors’ EV exports are minimal, restricted mainly to Nepal. Srivatsa noted that while there are significant export opportunities, the timing and product strategy will be critical for any future expansion.