The electric vehicle (EV) division of Indian automaker Tata Motors on Tuesday announced that it has cut the prices of its cars by up to ₹120,000 (~$1,450), the first such cut for an EV maker in the country. There is a cut.
Vivek Srivatsa, chief commercial officer, TPG-backed Tata Passengers, said, “Given the recent softening of battery cell prices and the potential shortfall in the near future, we have decided to proactively pass on the resulting benefits directly to customers. ” Electric mobility.
The price of the best-selling Nexon.ev has now dropped by 1.4% to Rs 1.45 million. According to Tate’s website, prices previously started at Rs 1.47 million.
The business, which controls the majority of EV sales in India, has also cut the price of its Tiago electric small car by Rs 70,000. Currently the base model is priced at Rs 799,000, which is about 8.1% less.
Launched in 2020, the Nexon.ev was India’s cheapest electric SUV until the launch of the Tata Punch EV in 2024 at Rs 1.2 million.
Global EV sales have also declined, with US automaker Tesla waging a price war to maintain its lead over rivals such as China’s BYD.
According to Jai Kale, vice president at Elara Capital, “Tata’s price cuts in India could prompt its rivals to price their cars more competitively and launch new EVs at aggressive prices.”
This is in stark contrast to the EV two-wheeler market in India, where Hero-backed Ather and IPO-bound Ola Electric are engaged in a price war.
After opening its only EV dealership in September, Tata intends to have ten electric vehicles in its inventory over the next three to four years. By 2025, it expects EV sales to account for 25% of all vehicle sales, up from 9.3% in the last fiscal year.
After this news, the shares of Tata Motors, which is facing competition from companies like Mahindra and MG Motor, fell by 1.9%.