Tata Motors’ electric vehicle (EV) unit has reduced the prices of its cars by Rs.1.2 lakh ($1,445.54) to pass on the benefits of reduced battery prices to customers.
Significance of The Move
This effort is the first instance of an Indian electric carmaker cutting prices. Currently, electric variants make up only 2% of car sales in India due to higher upfront costs and range anxiety. Vivek Srivatsa, the CEO of Tata Passenger Electric Mobility, explained that the decision to lower prices was due to the recent softening of battery cell prices and the potential for further reductions in the future.Details of Tata Motors’ Price Reduction
The top-selling Nexon.ev price fell by 1.4% with a cut of Rs.1.2 lakh, and the EV price is now Rs.16.99 lakh. Meanwhile, Tiago.ev price has been reduced by Rs. 70,000 rupees, making the base version 8.1% cheaper at Rs.7.99 lakh.Tata Motors’ Dominance in the EV Market
Tata Motors dominates EV car sales in India.Tata’s Punch EV launch in 2024 at Rs.10.99 Lakh made it India’s cheapest electric SUV, surpassing the Nexon.ev. Global EV sales have slowed, and Tesla is leading a price-cut war to maintain its sales lead over competitors like BYD.Tata Motors’ Future Plans
Tata, which initiated EV-only dealerships in September, plans to include 10 electric cars in its product lineup within three to four years. Additionally, the company aims to increase EV sales to 25% of its total car sales by 2025, up from 9.3% in fiscal 2023.LEADERBOARD
