There's no earthly reason for hybrids to get govt incentive: Tata Motors' P. B Balaji

Tata Motors' electric vehicles sales in the passenger vehicle segment have been under pressure in the recent months-- it fell 21% year-on-year (YoY) in July and 14% in the June quarter (YoY), amid a slow consumer adoption, policy changes and a broader slowdown in the car market. However, the company is not considering bringing hybrid cars in the near future and will keep the "razor sharp focus on EVs" and double down efforts to drive its penetration, P.B Balaji, chief financial officer, Tata Motors group said in a post earnings media call. According to Balaji hybrids do not merit any incentive from the government.

"All hybrid manufacturers make tonnes of money therefore, there is no earthly reason for it to get any incentive from the government. That is what we have been vociferous about. You incentivise where there is a need for bridge financing. Bridge financing is needed to get the technology curve bent. You give it to the destination technology. We don’t have a problem with technology per se but incentive to technology.

”The decline in July sales for the maker of Nexon.ev and Punch.ev models was the third consecutive monthly, year-on-year decline. Total dispatches at the maker of the Nexon.ev and the Punch.ev fell to 5027 units in July from 6329 units in the same month a year ago. This includes a few hundred units of exports. The company’s June quarter sales also dropped 14% to 16,579 units from the year ago period.

Balaji attributed it to discontinuation of the subsidy scheme from April for the fleet segment and overall slowdown in the car market also dented volumes, the company said. Fleet sales account for 20% of its EV sales.

He expects the sales to pick up in the coming months with the launch of the Curve.ev—its mid-size e-SUV later this month and restoration of subsidy in the FAME III scheme.

Additionally, he also expects the festive season to aid in recovery. “We do expect the momentum to build back in the EV business and our focus remains on building the market, focusing on improving the charging infrastructure. All our plans remain on track,” he said. Electric car sales in India have been under pressure since the beginning of 2024.

Dragged down by Tata Motors, which controls over70% of the segment, the e-passenger vehicles sales dropped to 5,484 units as on July 29 from the peak of 7201 units in April, shows vehicle registration data from the Vahan portal. Tata Motors EV registration has come off month-on-month—from 5794 units in January 2024 to4752 units in July 2024, only showing a moderate sequential recovery—4535 units in June to 4752 units in July.

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