We welcome competition but it has to be a level playing field: Shailesh Chandra, Tata Motors

The electric vehicle industry which earlier had just a few thousand vehicle sales a year is expected to touch 1,00,000 by the end of this financial year. The acti.ev is a platform that is designed to only accommodate electric power trains. It is designed around a battery pack that can give a smaller footprint with a higher range. It also allows you to create more space in the car. The platform will allow the use of the best technology. Punch was chosen because we wanted to continue to mainstream electric vehicle adoption

The investments are for creating a pure electric vehicle architecture, creating a differentiation on the top hat. Curvv is primarily being made as an electric vehicle which will require investment. There would be some part of the asset that will be used by ICE, these are crisscross royalty payments that are being done but investments that are unique to the company (electric vehicle or ICE). There is no burden of an ICE investment on an EV company or vice versa. 

The mix is the same, however, I believe it will increase with the Punch.ev. Nexon is used as a primary car whereas Tiago is used as a second or third car. There are a lot of young, tech-savvy buyers, urban seekers, living in small towns and travelling frequently, and people who go for more outdoorsy experiences but have a certain budget with feature-rich cars. There was no promising car in the Rs.15 lakhs subcategory. Punch.ev will bring in a lot of new buyers and a new set of customers 

We have identified multiple cities that have high electric vehicle adoption rates and are starting to open electric vehicle showrooms progressively in these cities. The pace will increase in the next three to four months. We open the dedicated electric vehicle showrooms and stop all other outlets from selling electric vehicles. We are smooth-cornering the issues and have a fast ramp-up plan. 

As of now there is only speculation on the entry of global players with import duty concessions. The Minister of State for Commerce has also clarified in the Lok Sabha that there is no proposal either to provide exemption from local value addition or to provide subsidy on import duty on import of electric vehicles in India. As a principle, we welcome competition but with a level playing field. Offering special benefits to anyone will not be the right thing. We are complying with all localization norms from the day of launching our EV. For instance, we started deliveries of the Tiago.ev in January 2023 and followed the rigorous process of PLI certification with the testing agencies, relevant government departments, and suppliers. A statutory audit was done to confirm the domestic value added. We expect to receive benefits only 18-24 months thereafter.

So, a level playing field would mean that global Original Equipment Manufacturers (OEMs) who enter India in the future should also invest in domestic manufacturing and value addition, before receiving any benefits. The Government’s policy direction is to promote/encourage local players to boldly invest in EV technology, moving up the value chain, creating skilled employment and an export base for EVs and new technology components. We believe that the government will ensure a level playing field for domestic players while inviting global EV players to India.

FAME subsidy should continue with benefits to zero-emission technologies till they reach a penetration of 20-25 per cent. Thereafter, it becomes self-sustaining as has been seen in several countries where EV adoption has grown. Subsidies can thereafter be gradually tapered down. Today, we are at just two to three per cent penetration in India and have a long journey ahead.