Tata Motors has announced a significant price reduction of up to Rs 1.20 lakh on various electric vehicle (EV) models in a bid to capitalize on the recent battery price hike. The decision is intended to directly benefit consumers by making electric vehicles more accessible and attractive in the Indian market.
Even if the price drops, the electric car commands a higher price than the fuel-powered model, and charging equipment is still a concern for buyers. However, Tata Motors is optimistic about the future of electric cars in India and plans to introduce several new models, including the Curvv, Harrier EV, Sierra and Altroz EV, later this year.
The
price cut affects three variants of Tata’s popular Nexon EV, with prices being reduced by Rs 1.20 lakh each. Therefore, the starting price of Nexon EV has now dropped from Rs 18.19 lakh to Rs 16.99 lakh. Additionally, the price of Tiago EV has been reduced by Rs 70,000, bringing the starting price down to Rs 7.99 lakh.Tata
Motors marketing chief Vivek Srivatsa talked about the company’s approach to offer direct benefits of lower battery prices to consumers. He cited the current weakness in battery prices and the potential for further price cuts in the future as key factors driving this decision.Tata
Motors’ move comes in an environment of intense competition and slowing demand in the electric vehicle segment. Other players in the market like MG Motor India have also adjusted their prices to remain competitive. MG Motor India has reduced the price of Comet and ZS EV models due to increased regionalization, improved logistics and cost effectiveness.
Shailesh
Chandra, General Manager, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Vehicles Ltd. We expect EV sales growth to slow to 40-45% this year due to a broader base. He explained that although electric vehicle sales have increased in recent years, growth should be stable as the market begins to expand.Battery
costs make up a large portion of the total cost of electric vehicles. Tata Passenger Electric Vehicles (TPEM) aims to accelerate the adoption of electric vehicles by making them more affordable. Srivatsa talked about the decline in lithium-ion battery prices, which reached a low of $139/kWh in November 2023, according to analysis by BloombergNEF.
Even if the price drops, the electric car commands a higher price than the fuel-powered model, and charging equipment is still a concern for buyers. However, Tata Motors is optimistic about the future of electric cars in India and plans to introduce several new models, including the Curvv, Harrier EV, Sierra and Altroz EV, later this year.
The
Federation of Automobile Dealers Association (FADA) reports that electric passenger car sales will increase in 2023 and Tata Motors will have more than 70% market share in the segment. With competitive pricing and product expansion, Tata Motors aims to rapidly strengthen its position in the electric vehicle market in India.