Date: February 14, 2024. — Tata Motors has announced a price cut of 1% to 8% for its electric vehicles (EVs), making them more affordable for Indian customers.
The price reduction ranges from 70,000 rupees ($945) for the Tiago EV, a small hatchback, to 120,000 rupees ($1,450) for the Nexon EV, a compact SUV. The Tiago EV now starts at 799,000 rupees ($10,800), while the Nexon EV starts at 1.45 million rupees ($19,600). The company also offers a new entry-level variant of the Nexon EV at 1.2 million rupees ($16,200).
Tata Motors said the price cut was possible due to the softening of battery cell prices in the recent past. They also mentioned the expected reduction in the future. “We’ve decided to directly pass on the benefits stemming from the recent softening of battery cell prices, and anticipating further reductions in the future,” explained Vivek Srivatsa, Tata Passenger Electric Mobility’s chief commercial officer.
Tata Motors sold 11,000 EVs in the year, a 220% increase over the previous year. The Nexon EV was the best-selling electric vehicle in the country, selling over 8,000 units.
The company stated that it was committed to expanding its EV range and increasing market share in the coming years. It intends to debut 10 new electric vehicles by 2027, spanning a variety of segments and pricing points. It also plans to boost the share of EVs in total automobile sales to 25% by 2025, up from 9.3% in fiscal 2023.
Tata Motors’ price decrease could increase demand for EVs in India, where electric variants currently account for only 2% of car sales. The primary challenges to EV adoption in the country are high upfront prices. Additionally, there’s a lack of charging infrastructure and users’ range concern. The government has attempted to promote EVs through a variety of incentives and policies. This includes the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, which offers subsidies to EV buyers.
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