West Asia conflict accelerated EV adoption in India: Tata Motors MD

The company said the conflict has shifted consumer demand for electric vehicles from a "push" to a "pull" market, while expecting EV penetration to reach 7-8 per cent this fiscal

The West Asia war has played a key role in the faster acceptance of electric mobility in India, shifting the market from 'a push mode to a pull mode', Tata Motors Passenger Vehicle Ltd Managing Director & CEO Shailesh Chandra said on Tuesday.

The company, which launched the electric version of its popular SUV Sierra at an introductory price ranging between Rs 18.79 and Rs 24.79 lakh, expects industry EV penetration in the passenger vehicle segment to be 7-8 per cent this fiscal and cross 10 per cent in FY28, he told reporters here in an interaction.

While the entry of multiple players in the EV segment and the breaking of barriers across subsegments such as pricing, range anxiety, and charging infrastructure have helped EV growth, the West Asia war has also played a significant role, he added.

 

"Around the Middle East crisis, there has been a faster acceptance. I would say, if the same customers were reluctant before, say, February 2026, they are now more amenable to considering an EV," Chandra noted.

He further said, "The Mideast crisis has shifted the market from a push mode to a pull mode, and therefore that is also definitely a force multiplier or a catalyst to the already growing EV industry on the back of some strong products and on the back of multiple players coming into this segment."  The bookings for the latest eSUV start from Tuesday, while deliveries will commence from July 15, the company announced.

The fuel price increases, and even in some cases fear of non-availability of fuels, had made consumers consider EVs, especially in the entry segment of PVs where total running cost is a big consideration, he added.

"It (EV) is an industry which has transitioned from early adopters to mainstream, and now electric vehicles are becoming more and more mainstream," Chandra said.

For the ongoing fiscal, he said EV penetration in the PV segment is expected to be around 7-8 per cent this fiscal, up from 4.5 per cent in FY26, and is likely to cross 10 per cent in FY28.

Commenting on Sierra.ev, he said it falls in the premium mid-SUV, one of the fastest-growing segments in the PV industry.

"As India is gearing up for its prime electric era, the Sierra.ev is a car that fits every lifestyle beautifully...," Chandra said.

Mid-SUV segment is lying in the sweet spot of practicality, premiumisation, at the same time accessibility.

The cars selling at this price point is just sitting around that sweet spot of Rs 15 lakh slightly on the right side of the industry median of Rs 12 lakh, Chandra said.

Noting that the company is facing supply constraints due to certain suppliers, he said overall demand is outstripping production but it is working to increase production.

"Right now we are doing about 60,000-65,000 units at a monthly level, we would definitely like to consistently first stabilise ourselves at, say 70,000 (units this fiscal) level, and this will have a significant portion also going to EVs," he added.