Mass adoption of electric vehicles in India will depend on making entry-level products commercially viable, according to Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. He stated that while India has made steady progress in EV penetration, the next phase of growth hinges on affordability in the lower price segments where the bulk of car buyers are concentrated.
Speaking about the evolution of the EV market, Chandra highlighted that India is currently in a transition stage. EV penetration in passenger vehicles stands at around 4–5 percent, but this growth is largely driven by models priced above the ₹12 lakh bracket. In contrast, the entry-level segment, which accounts for a significant share of total passenger vehicle sales in the country, continues to see limited EV adoption.
He noted that penetration in the sub-₹12 lakh category remains significantly lower, indicating that affordability and value perception remain major barriers. According to him, even a small increase in adoption within this mass-market segment could substantially raise overall EV penetration in India.
The primary challenge lies in balancing battery cost, vehicle range, and pricing. Batteries remain the most expensive component of an electric vehicle, and offering adequate real-world range at an accessible price point has proven difficult for manufacturers. As a result, most EV offerings in India are currently positioned in higher price brackets, limiting their appeal to value-focused buyers.
Chandra emphasized that for EVs to become mainstream rather than aspirational, manufacturers must develop cost structures that make entry-level electric cars financially viable without compromising on performance, safety, or reliability. This includes deeper localisation of components, scaling up production volumes, and improving battery technology economics over time.
Beyond pricing, he also underlined the importance of infrastructure and customer confidence. A stronger charging network, transparent ownership costs, and long-term battery warranties play a critical role in influencing purchase decisions. However, he maintained that product affordability remains the most immediate lever for driving widespread adoption.
India’s broader EV ambitions are closely tied to national goals such as reducing fossil fuel dependence, improving urban air quality, and enhancing energy security. Accelerating adoption in the mass segment would not only increase sales volumes but also help build scale for domestic EV manufacturing, battery supply chains, and supporting industries.
Industry stakeholders have been focusing on policy support, incentives, and manufacturing investments to bring down costs. As competition intensifies and technology improves, the entry-level EV segment is expected to become a key battleground for growth.
Chandra’s comments reflect a structural shift in focus within the industry — from proving the viability of EV technology to ensuring accessibility for mainstream buyers. The coming years will determine whether manufacturers can overcome cost barriers and expand electric mobility beyond premium urban consumers.
For India’s EV transition to move from early growth to true mass adoption, the viability of entry-level electric vehicles will be decisive.
