Tata Motors Managing Director and CEO said India’s unique incentive structure and ecosystem development have put the country ahead of several global markets in commercial vehicle electrification
While electric truck adoption is slower than expected in several markets around the world, India is emerging as one of the bright spots in commercial vehicle electrification.
Replying to MOTORINDIA’s question on how India compares with global markets at the Tata Motors FY26 Annual Review Press Roundtable, Girish Wagh, Managing Director and CEO, Tata Motors Limited, attributed India’s progress to supportive government policies, localization initiatives and active investments by domestic OEMs and ecosystem partners.
“India is really doing well in terms of EV adoption,” he said.
Policy support matters
One of the biggest differences, Girish said, is the balanced approach taken by the Indian government in promoting electrification.
Unlike some countries that rely primarily on penalties for higher carbon emissions, India has adopted a framework built around incentives and policy support.
“The government has created a very unique ecosystem where there are demand-side and supply-side incentives,” he explains.
On the demand side, measures such as lower GST rates and schemes including PM E-DRIVE and PM eBus have supported faster adoption. At the same time, production-linked incentives (PLI) have encouraged domestic manufacturing, while phased manufacturing schemes have accelerated localization across the entire EV value chain.
“I think one of the best things the government has done is to drive localization. When you combine domestic value addition with an incentive structure, it creates a stronger ecosystem,” Girish observed.
Industrial investment
Girish stressed that government support alone is not enough and Indian manufacturers are supporting this transformation with continued investments.
Tata Motors Commercial Vehicles has been investing in electric vehicles for over five years, developing a purpose-built iMove architecture while localizing several key components under the country’s phased manufacturing plan.
“Local OEMs have stepped forward and invested heavily. It’s not just about having multiple products. We developed a completely new architecture and localized a lot of the aggregation,” he said.
Ecosystems come together
Girish also credited charging infrastructure providers and financial institutions for accelerating the adoption of electric vehicles.
Initially, financiers were cautious due to concerns about technology maturity and residual value, while charging operators were uncertain about utilization levels and return on investment. However, growing market confidence has encouraged wider participation across the ecosystem.
“Now that it’s all coming together, we’re seeing very good penetration,” he said.
Small trucks gain momentum
Interestingly, Girish highlighted that the appeal of electric small commercial vehicles (SCVs) is encouraging despite not being covered by the PM E-DRIVE incentive scheme.
He believes improvements in charging infrastructure, financing availability and favorable total cost of ownership (TCO) are driving customer acceptance.
“In certain operating cycles, customers are able to achieve TCO parity in two, three or four years. On top of that, lower operating costs can generate additional revenue for customers,” he explained.
No need to push hybrid
As electrification continues to gain momentum, Girish believes government incentives should continue to focus on pure electric vehicles rather than hybrid technology.
“I still firmly believe that from a government incentive perspective, there is no need to promote hybrids. If hybrids make commercial sense for customers and OEMs, they will naturally find their place. However, electrification still requires policy support, and we are grateful to the government for the environment created,” he concluded.