Tata Motors has announced a price cut of up to Rs. 1,20,000 across its line of electric cars. This is the first time an EV manufacturer has decreased the prices of its models. Even though EVs have a lower running cost, the electric variant of a particular model costs much more than the regular ICE variant. Hence, the price cut by the company could encourage more customers to get their first EV.
Why Did The Company Cut Prices?
Vivek Srivatsa, the chief commercial officer at Tata Passenger Electric Mobility, says that the battery cell prices have decreased recently. In the foreseeable future, the prices could go down even further, which is why the company has decided to pass on the benefit to customers. As part of the price cut, Tata’s most popular EVs, the Nexon.ev and Tiago, have received significant discounts.
Which Variants Have Received Discounts?
The Nexon EV’s price has decreased to Rs. 14,50,000 from Rs. 15,70,000. The Tiago EV’s price has dropped by Rs. 70,000 to Rs. 7,99,000. This will not only encourage more customers to get the cars, but it will also prompt other companies to discount their EV models. Over the next three to four years, Tata plans to have 10 EVs in its portfolio.
However, the prices of other models, such as the Punch EV, remain unchanged as the company has already factored in the decrease in battery costs while releasing the prices. In January 2024, the EV segment has grown by 100 percent year-over-year, which is a positive sign for the automakers. Tata Group would want to reinforce its position as one of the market’s pioneers.
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