36% consumers have let go of their ICE vehicles for EV: Tata Motors

Even as the demand for electric vehicles dipped during the first quarter of FY25, market leader Tata Motors has witnessed a trend of consumers giving up their ICE (Internal Combustion Engine) vehicles.

According to a survey conducted by Tata Motors, 36 per cent of customers have let go of their ICE vehicles while 75 per cent of customers use electric vehicles as their primary vehicle.

“We surveyed 10,000 customers and observed a growing trend of customers letting go of ICE vehicles. Electric vehicles are being used as primary cars in families. There is a growing confidence among consumers. The maintenance cost of electric vehicles is low and the battery gets replaced every 8 years. With the launch of the Curvv electric vehicle, people will not have any range anxiety, said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

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The company launched the Curvv electric vehicle in its electric architecture acti.ev offering a maximum range of 585 km with a 55kWh battery pack. The starting price of the Curvv.ev is ₹17.49 lakh. 

“Consumers are looking for versatile vehicles capable of intercity travel. Since the charging infrastructure is still suboptimal, one needs to have a higher-range car. Therefore Curvv has to overcome the barriers; range anxiety in a period where charging infrastructure is sub-optimal at the same time it should achieve price parity with automatics in the ICE world,” he said. 

The Mumbai headquartered company had stated that it witnessed a decrease in demand for electric vehicles during the quarter owing to the reduction in FAME subsidy. The penetration stood at 12 per cent with 16,600 vehicle units sold during the quarter.

EV Penetration

Automobile dealers say that while the number of consumers enquiring about electric vehicles has risen, many still prefer ICE vehicles, the penetration in the segment will increase with more vehicle options.

“While there is an uptick in customers demanding electric vehicles, there is a lack of variety. Consumers are expecting upgraded features and an extended range in electric passenger vehicles. With the launch of born electric vehicles and other Original Equipment Manufacturers (OEM) joining the EV landscape, the penetration is expected to increase. FADA will continue to promote eco-friendly practices across the auto retail industry,” said Manish Raj Singhania, president of the Federation of Automobile Dealers Association (FADA).