Tata Motors’ electric vehicle (EV) division announced a significant price reduction on Tuesday, marking the first instance of an electric car manufacturer in India cutting prices. The company has slashed prices by up to Rs 1.2 lakh, passing on the benefits of reduced battery costs directly to customers.
The Passenger Electric Mobility division of Tata Motors will now offer the popular Nexon EV at a starting price of Rs 14.49 lakh, while the Long Range Nexon EV (465 km) will begin at Rs 16.99 lakh. Additionally, the price of the electric small car Tiago has been reduced by Rs 70,000 to Rs 7.99 lakh.
Vivek Srivatsa, Chief Commercial Officer at Tata Motors, emphasized the decision to lower prices, stating, “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.”
He further added, “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.”
The prices of the recently launched Punch EV remain unaffected, as they have already incorporated the anticipated reduction in battery prices. Tata Motors highlighted that its Passenger Electric Mobility division, with over 70% market share, is the market leader in this rapidly expanding segment.
On the stock market, Tata Motors’ scrip was trading 1.67% lower at Rs 896.35 on BSE at 12:43 hours on Tuesday.
