PB Balaji, chief financial officer, Tata Motors Group 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.
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 expects the sales to pick up in the coming months with the launch of the Curvv.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 over 70% 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 to 4752 units in July 2024, only showing a moderate sequential recovery—4535 units in June to 4752 units in July.