Tata Motors Requests FAME III Scheme to Include Light to Heavy Trucks

Amidst stagnant growth in the commercial vehicle sector, Tata Motors is urging that the forthcoming FAME III subsidy scheme be expanded. They want it to encompass light, medium, and heavy-duty trucks with gross vehicle weights exceeding 3.5 tons.

Tata Motors' Appeal for FAME III Inclusion

Tata Motors has advocated for the FAME III scheme to extend its benefits to private buses and hydrogen internal combustion engines. They also want the scheme to cover trucks of varying sizes, including light, medium, and heavy categories. The previous FAME scheme only covered N1 trucks, which have a gross vehicle weight (GVW) of up to 3.5 tons. Tata Motors is pushing for the inclusion of N2 trucks (GVW between 3.5 and 12 tons) and N3 trucks (GVW over 12 tons) in the new scheme.

Recent Market Trends and Tata Motors’ Response

In the past two months, Tata has observed a 4% decline in the commercial vehicle market. They attribute this decline to reduced fleet utilization and lower diesel consumption. The company has tested some heavy electric commercial vehicles in specific applications to evaluate their performance.

At the recent SIAM (Society of Indian Automobile Manufacturers) annual convention, Tata Motors’ Executive Director expressed hopes for the FAME III scheme. They want it to support a broader range of commercial vehicles. Tata Motors also seeks to include hydrogen vehicles in the FAME incentive. They highlight the potential of hydrogen internal combustion engines for long-distance transport.

Tata Motors' Outlook on Commercial Vehicle Sales

Girish Wagh, Executive Director of Tata Motors, shared expectations for the commercial vehicle sector, predicting an improvement in demand as the monsoon season concludes and mining activities resume. Despite the current downturn, Wagh anticipates a positive shift with the upcoming festive season and projects flat growth by the end of the financial year 2025.

Tata Motors' Advancements in EV Technology

Tata Motors is committed to advancing alternative fuel technologies in the commercial vehicle sector. Wagh highlighted the company's efforts in developing electric battery technology, fuel cell electric vehicles, and hydrogen-powered engines. Tata Motors currently operates 5,000 Ace EVs and 3,000 electric buses. It also continues to test heavy electric commercial vehicles to assess their performance in real-world applications.

Looking Ahead

Tata Motors continues to innovate and expand its product range, from half-ton payload vehicles to 55-ton GVW models. The company remains hopeful that the forthcoming FAME III subsidy scheme will recognize its request to include N2 and N3 trucks. This inclusion would further support the commercial vehicle industry’s transition to cleaner technologies.

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