Tata Motors slashes EV prices by up to Rs 1.2 lakh

Tata Motors has made a significant move in the electric vehicle (EV) market by slashing the prices of its Nexon and Tiago EV models by up to Rs 1,20,000. This price adjustment comes as a result of a slight decline in the costs of battery cells crucial for manufacturing these cars.

While the Tata Punch EV's prices remain unchanged, the reduction positions the Tiago EV with a starting price of Rs 7.99 lakh, the Nexon EV starting at Rs 14.49 lakh, and the long-range Nexon EV starting at Rs 16.99 lakh in the Indian market.

In a statement released by Tata Passenger Electric Mobility Ltd (TPEM), Vivek Srivatsa, the Chief Commercial Officer, highlighted the significance of battery costs in the overall pricing of EVs. With recent softening in battery cell prices and anticipated further reductions, Tata Motors aims to directly pass on the benefits to customers.

Srivatsa explained that the company's mission to drive widespread adoption of EVs by enhancing their accessibility across the nation. He stated that at these adjusted prices, the Nexon EV and Tiago EV present even more compelling options for a broader customer base.

Experts emphasise that electric vehicles (EVs) hold immense potential for sustainable transportation, particularly in urban areas where pollution and congestion are significant concerns. However, despite soaring oil prices, buyers have been hesitant to transition to EVs. The primary deterrents cited are the high price tags associated with e-vehicles and the lack of a robust charging infrastructure network.

According to experts, the establishment of an adequate charging infrastructure is crucial to driving widespread adoption of EVs. As such, efforts to expand and enhance charging facilities across regions will play a pivotal role in encouraging consumers to embrace electric mobility and reduce reliance on fossil fuels.

The Tata Tiago EV, introduced in October 2022 at an introductory price of Rs 8.49 lakh (ex-showroom), offers two battery pack options. One includes a 24-kWh battery pack with a range of 315 km, while the other offers a 19.2 kWh battery pack delivering a range of 250 km.

A 2023 Bain & Company's report underlines the necessity for mass-market EV models to accelerate EV penetration in India from the current 1.5 per cent to over 20 per cent by 2030. Factors such as higher prices, shorter range, and lower power have hindered EV penetration in the passenger vehicle segment, with EVs costing approximately 50 per cent more and providing 50-60 per cent less range and 30 per cent less engine power compared to ICE models.

To achieve the projected growth, significant interventions from carmakers will be essential, including the development of price-competitive EV models and EV-first platforms for the mass market. India's EV market has witnessed increased investment in recent years, with significant capital raised in 2021 and 2022, primarily directed towards OEMs like Tata Motors, Mahindra & Mahindra, and Ola Electric. This surge in investment underscores the growing confidence and potential of the Indian EV market.