Shares of Tata Motors that were trailing in the red on Tuesday morning shot up sharply after the Uttar Pradesh government made a major announcement regarding electric vehicles.

What Happened: The Uttar Pradesh government has extended the exemption for electric vehicle buyers until October 2027. Customers purchasing electric vehicles will now be able to receive subsidy benefits of ₹5,000 for two-wheelers and ₹1 lakh for four-wheelers.

Previously, the rebate was only available for one year and ended in October 2023. This extension was approved by the Governor as an amendment to the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy-2022.

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Tata Motors is one of the biggest electric vehicle manufacturers in the country. Tata Motors, India's largest EV maker by volume, accounted for nearly 75% of the nearly one lakh electric cars sold last year, according to VAHAN data. In June, the company reported a 34% year-on-year in EV sales at 4,657 units.

Shares of the auto giant shot up sharply as soon as the news made headlines, but fell shortly after. The company will report its earnings for the quarter ended June on August 1.

Price Action: Tata Motors’ share price was up 0.14% to trade at ₹1,025.90 at the time of writing on Tuesday.

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