Tata Motors' electric vehicle (EV) unit on Tuesday said it has reduced prices of its cars by up to Rs 1.2 lakh in what is the first instance of a price cut by an electric carmaker in India. The carmaker has essentially passed on battery price reduction benefits to its customers.
Tata Motors said its Passenger Electric Mobility (TPEM) division will now sell the top-selling Nexon.ev at a starting price of Rs 14.49 lakh. Price of Long Range Nexon.ev (465 km) will now be starting from Rs 16.99 lakh.
The company also cut the price of its electric small car Tiago by Rs 70,000 to Rs 7.99 lakh.
"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," Vivek Srivatsa, Chief Commercial Officer at the TPG-backed company said.
"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, range 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.
The prices of recently launched Punch.ev remain unchanged "as they already factor in reduction in battery price in the foreseeable future", said the carmaker.
Tata, which began EV-only dealerships in September, plans to have 10 electric cars in its portfolio over the next three to four years. It also aims to bring up EV sales to 25 per cent of its total car sales by 2025 from 9.3 per cent in fiscal 2023.
In 2023, the EV segment grew by over 90 per cent against the 8 per cent growth recorded by the PV industry, it said.
This growth momentum has continued in 2024 as well with EV sales registering a 100 per cent year-on-year growth in January 2024.
TPEM with over 70 per cent market share is the leader in this fast-growing segment, the automaker said.
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