Tata Motors announced announced price cuts for two of its popular models Nexon EV and Tiago EV, by up to Rs 1.2 lakh due to a reduction in battery costs. The company has lowered the price of the Nexon EV by up to Rs 1.2 lakh, with the model now starting at Rs 14.49 lakh.
Similarly, prices for the Tiago EV have been decreased by up to Rs 70,000, with the base model now priced at Rs 7.99 lakh, Tata Motors stated in a release. The introductory prices for the recently-launched Punch.ev remain unchanged, as they already incorporate the expected reduction in battery costs in the near future, ET reported.
Vivek Srivatsa, Chief Commercial Officer of Tata Passenger Electric Mobility (TPEM), commented, Battery costs constitute a significant portion of the overall cost of an EV. With recent softening in battery cell prices and the potential for further reductions in the future, we have opted to pass on these benefits directly to customers.
While the EV market has experienced rapid growth in recent years, Tata Motors aims to further accelerate the mainstream adoption of EVs by enhancing accessibility nationwide, Srivatsa added. The company noted that EVs have shown robust growth momentum, significantly outpacing the overall passenger vehicle industry growth.
In 2023, the EV segment witnessed over 90% growth, in contrast to the 8% growth recorded by the PV industry, Tata Motors highlighted. This growth trend has continued into 2024, with EV sales registering a 100% year-on-year increase in January 2024. TPEM, holding over 70% market share, stands as the leader in this rapidly expanding segment, the automaker emphasized.