Tata Motors slashes prices of Nexon, Tiago EVs by up to Rs 1.2 lakh

Tata Motors, India’s leading electric vehicle (EV) maker, on Monday slashed the prices of its two popular cars by up to Rs 1.2 lakh to pass on to consumers the benefits of reduced battery prices.

Depending on the model, the Nexon.ev would now start at Rs 14.49 lakh and the Tiago.ev from Rs 7.9 lakh.
Nexon’s price was reduced by up to Rs 1.2 lakh and the Tiago by is up to Rs 70,000. Prices of the recently launched Punch.ev remain unchanged as the battery price reduction was already factored in, said Tata Motors, which has more than 70 per cent of India’s EV market.

The company earlier cut MG Comet’s prices by Rs 90,000 to Rs 1.4 lakh. MG Comet, a hatchback electric car, now starts at Rs 6.99 lakh. Mahindra XUV400, Nexon’s competitor manufactured by Mahindra & Mahindra, is getting a face-lift for fresh launch by March.

Tata Motors, in January 2023, cut prices of Nexon.ev by up to Rs 85,000, saying it had benefited from additional locations, government initiatives, and production efficiency.

Relatively more people are now buying lower variants of EVs as “anxiety” about range soothes, Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility (TPEM), told Business Standard earlier this month.

“When buying an EV, the first thing that the customer thinks of is about range. But we are seeing a little maturity coming into that aspect. People are realising that they are going to use the car in the city most of the time and probably once a year they go out of town. They are now right sizing their expectations," he said.

More affordable EVs would be adopted faster. A Tata Motors dealer said on grounds of anonymity that many customers go for the higher-end version of an ICE vehicle as it is cheaper than an electric version. But “as EV pricing becomes more attractive, more people would opt for EVs as the cost of running is minimal,” the dealer said.

Srivatsa said earlier: “Battery costs constitute a substantial part of the overall cost of an EV. 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.”

Tata Motors’ EV sales in January grew by 69 per cent year-on-year (YoY) to 6,979 units (including exports). Total passenger vehicle sales (including ICE vehicles) grew by 12 percent YoY to 54,033 units.

“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,” said Srivatsa.

In Calendar Year (CY) 2023, the EV segment grew by over 90 per cent compared to the 8 per cent growth recorded by the PV industry. This momentum has continued in CY2024 with EV sales registering 100 percent YoY growth in January 2024.