Tata Motors has formally requested the Indian government to introduce targeted incentives for entry-level electric vehicles (EVs) in the forthcoming Union Budget 2026. This plea comes amidst growing cost pressures and heightened competition from petrol-powered cars, particularly after recent GST reforms that have made conventional vehicles more competitive on price. Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles, highlighted that while government measures like GST 2.0 and repo rate reductions have boosted the overall passenger vehicle industry, entry-level EVs continue to face significant challenges regarding affordability. Furthermore, Tata Motors has advocated for the inclusion of electric cars utilized in the fleet segment under the PM E-DRIVE scheme. These fleet vehicles were previously supported under the FAME-2 scheme but have not yet been incorporated into the PM E-DRIVE initiative. Chandra emphasized the substantial environmental impact of fleet electrification, noting that these vehicles, despite accounting for only about 7% of overall passenger vehicle sales, contribute to approximately 33-35% of passenger kilometers traveled. Providing incentives to this segment would have a multiplier effect on reducing emissions and oil imports. The automotive industry, including key players like Tata Motors, is keenly awaiting the Union Budget 2026, scheduled to be presented on February 1, 2026. Expectations are high for policy refinements, including potential recalibration of the Production-Linked Incentive (PLI) scheme for EVs, enhanced support for domestic manufacturing, and R&D, as indicated by analyses from Deloitte India. The aim is to accelerate EV adoption, reduce reliance on imported technologies, and manage the country's crude oil import bill, making the government's response to these industry demands critical for the future of electric mobility in India.