Tata Motors cuts EV prices by up to Rs 1.2 lakh as battery cost dips

Tata Motors cuts EV prices, Tata Motors has announced a price cut of up to Rs 1.2 lakh on its electric vehicles (EVs) following a fall in battery costs. The price reduction will apply to the company’s passenger EVs including the Nexon EV, Tigor EV, and Tiago EV.

The maximum price cut of Rs 1.2 lakh will be applicable on the top-end version of the Nexon EV, which will now start at Rs 14.49 lakh instead of Rs 15.99 lakh earlier. The lower-priced variants of the Nexon EV will see a price reduction of up to Rs 80,000.

Similarly, the Tigor EV will be cheaper by up to Rs 70,000 while the Tiago EV will see a maximum price cut of Rs 60,000.

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“The EV industry is witnessing tremendous technological advancements in battery engineering. We continue to improve our existing battery pack technology and at the same time develop new battery technology. We endeavor to pass on the advantage of the optimized battery costs to our customers to make EVs more accessible. We recently launched two new EVs, the Tiago EV and Tigor EV, at introductory prices and have worked relentlessly over the past few months to produce estas at scale. Our internal focus on fast-tracking the localization of components has helped to make our product more affordable and accessible to customers. Going forward, we expect such price interventions to remain in play as economies of scale set in and more localization is undertaken,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd in a statement.

Tata Motors cuts EV prices
Source – Eenadu.net

The price cut has been enabled by a 15-20% decline in battery pack prices over the last year due to advancements in electric vehicle technologies including cell chemistry, packaging, and manufacturing. This has allowed Tata Motors to absorb a significant part of the battery cost deflation.

The company said that it will continue to offer best-in-class ownership experiences at optimized costs backed by a widespread network, affordable maintenance solutions, and a robust ecosystem for end-to-end support.

Experts said the price cut will boost the demand for EVs in India and help Tata Motors strengthen its leadership position in the segment. The company already has over 85% market share in the EV passenger vehicle category.

“The price cut reinforces Tata Motors’ commitment to mainstream EVs and making them more affordable for the buyers. It will further spur the adoption of electric vehicles in the personal mobility space. The reduced pricing will particularly attract more buyers in the entry-level EV segment where Tata has a dominant presence,” said an industry expert on condition of anonymity.

With the revised prices, Tata Motors’ EVs have become even more competitive compared to petrol and diesel models in their respective price brackets.

The price cut comes at a time when the Indian government is also taking steps to promote electric mobility. The Union Budget 2023-24 has proposed several incentives including tax deductions on EV loans. Many states have also rolled out their own EV policies and offered demand incentives.

Also Read – JSW Group to Invest Rs 40000 Crore to Setup EV Manufacturing Plant in Odisha

Tata Motors reported a three-fold jump in EV sales to 12,000 units in the April-December 2022 period compared to 4,000 units in the same period previous fiscal. The company aims to develop a full portfolio of 10 EVs over different product categories, body styles, and affordability levels. It plans to invest Rs 15,000 crore in the EV space over the next five years.

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