Tata Motors Announces First EV Price Cuts in India
Just 2% of cars sold in India are electric versions at the moment due to range anxiety and purchasers’ apprehension about the higher upfront expenses despite lower ongoing expenditures.
Chief Commercial Officer Vivek Srivatsa of the TPG-backed Tata Passenger Electric Mobility stated, “We have chosen to proactively pass on the resulting benefits directly to customers with battery cell prices having softened in the recent past and considering their potential reduction in the foreseeable future.”
The price of the top-selling Nexon.ev is now down 1.4% to 1.45 million rupees. Prices on the Tata website previously started at 1.47 million rupees.
The business, which controls the majority of EV vehicle sales in India, recently lowered the cost of its Tiago electric small car by 70,000 rupees. The base model now costs 799,000 rupees, which is around 8.1% less than before.
The Nexon.ev, which debuted in 2020, was the least expensive electric SUV in India up until Tata’s Punch EV, which costs 1.2 million rupees, debuted in 2024.
Worldwide EV sales have also decreased, with American automaker Tesla spearheading a price war to keep its lead over competitors like China’s BYD.
According to Jay Kale, vice president of Elara Capital, “Tata’s price cut in India could prompt its rivals to also price their cars more competitively and launch newer EVs at aggressive prices.”
This stands in stark contrast to the EV two-wheeler market in India, where Hero-backed Ather and IPO-bound Ola Electric are engaged in a price battle.
Tata also plans to open new car dealerships in the coming quarters in select Indian cities that will exclusively sell electric vehicles as its clean car sales pick up and The company plans to launch new electric vehicle models more quickly.
Global sales of electric vehicles have increased as stricter emissions regulations push automakers to increase the share of electric cars in their portfolios. While Tesla still leads the electric car race, Chinese rivals like BYD are catching up with new factories and aggressive exports.
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