Tata Motors Cuts EV Prices Amid Softening Of Battery Rates

France Slashes EV Subsidies By 20% For High Income Earners: Report. Pexels.

Tata Passenger Electric Mobility Ltd (TPEM), a subsidiary of Tata Motors today announced that the company is slashing the prices of two of its EVs – Nexon.ev and Tiago.ev. The company said that it is reducing the prices with the objective of making EVs more accessible to Indian customers.

Further, Tata Motors has reduced the price of Nexon.ev by up to Rs 1.2 lakh while Tiago.ev has got a price reduction of up to Rs. 70,000, with the base model starting at Rs. 7.99 Lakh. The company also stated that the inaugural prices of the recently launched Punch.ev remain unchanged as they already factor in a reduction in battery price in the foreseeable future. Moreover, Nexon.ev will now come at a price of Rs. 14.49 Lakh while Long Range Nexon.ev (465km) will now be sold at Rs. 16.99 Lakh.

Speaking about this price reduction, Mr. Vivek Srivatsa, Chief Commercial Officer, TPEM, said, “Battery costs constitute a substantial part of the overall cost of an EV. With battery cell prices having softened in the recent past and considering their potential reduction in the foreseeable future, we have chosen to proactively pass on the resulting benefits directly to customers.

“While EVs have grown rapidly over the last few years, our mission is to accelerate the mainstream adoption of EVs by making them more accessible nationwide. Our portfolio already offers a wide choice of body styles, ranges, and price points for our smart, feature-rich EVs. We believe that at these accessible prices, the best-selling Nexon.ev and Tiago.ev become an even more compelling proposition to attract a larger pool of customers,” he added.

Electric vehicles have shown a strong growth momentum and are substantially outperforming the overall passenger vehicle industry growth. In CY2023, the EV segment grew by over 90% against the 8% growth recorded by the PV industry. This growth momentum has continued in CY2024 with EV sales registering 100% YoY growth in January 2024.

According to media reports, Kerela has gained a top spot as far as demand for electric vehicles is concerned followed by Maharashtra. Though Kerela accounts for only 4 percent of vehicles sold in India, the southern state has seemingly become the state with the highest demand for electric cars.