The electric vehicle (EV) division of Indian automaker Tata Motors announced on Tuesday that it has slashed pricing of its vehicles by as much as 120,000 rupees (~$1,450), marking the first time a national price reduction for an EV manufacturer.
Just 2% of cars sold in India are electric versions at the moment due to range anxiety and purchasers’ apprehension about the higher upfront expenses despite lower ongoing expenditures.
The best-selling Nexon.ev is currently 1.4% less expensive at 1.45 million rupees. Prices on the Tata website previously started at 1.47 million rupees.
Tata Motors, which controls the majority of EV vehicle sales in India, recently lowered the cost of its Tiago electric small car by 70,000 rupees. The base model now costs 799,000 rupees, which is around 8.1% less than before.
The Nexon.ev, which debuted in 2020, was the least expensive electric SUV in India up until Tata’s Punch EV, which costs 1.2 million rupees, debuted in 2024.
Global EV sales have also decreased, with American automaker Tesla spearheading a price war to keep its lead over competitors like China’s BYD.
This stands 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 battle.
After opening EV-only dealerships in September, Tata intends to offer ten electric vehicles in the following three to four years. Additionally, it plans to increase EV sales from 9.3% of all automobile sales in fiscal 2023 to 25% by 2025.
Following the announcement, shares of Tata Motors, which rivals companies like Mahindra and MG Motor, dropped as much as 1.9%.
