Tata Motors passes on battery price reduction benefits to customers
Tata Motors has recently announced a notable price reduction on the Nexon EV and the Tiago EV. The price cuts of upto Rs. 1.20 lakhs come as a result of softened battery cell prices, according to the company. This reduction is expected to make these electric vehicles more competitive in their respective segments, potentially boosting sales for Tata Motors.
The Medium Range (MR) variant of the Nexon EV now starts at Rs. 14.49 lakhs after a reduction of Rs. 25,000/-, while the Long Range (LR) variant witnesses a more substantial decrease of Rs. 1.20 lakhs, bringing its starting price down to Rs. 16.99 lakhs. Similarly, the Tiago EV sees a price drop of Rs. 70,000/-, now priced from Rs. 7.99 lakhs onwards.
However, Tata Motors has not provided a detailed breakdown of the price revisions yet, leaving room for speculation regarding the exact components contributing to the reduction. Additionally, while the prices of the recently launched Punch EV and the Tigor EV remain unchanged, it’s worth noting that the Tiago EV’s competitor, the MG Comet, has also seen significant price cuts of up to Rs. 1.40 lakhs. This suggests a competitive market environment where manufacturers are adjusting prices to attract more customers.
In terms of sales outlook, Tata Motors highlights the growing popularity of electric vehicles in India, with EV sales experiencing a remarkable 90 percent growth compared to the modest 8 percent growth in the overall passenger vehicle segment. Tata Motors remains a leader in the EV market, having achieved a 100 percent year-on-year growth in EV sales at the start of 2024.
Overall, the price reductions by Tata Motors reflect a strategic move to capitalise on the evolving market dynamics and further penetrate the electric vehicle segment. As the electric vehicle market continues to mature, it’s expected that more manufacturers will follow suit with competitive pricing strategies to cater to the increasing demand for sustainable mobility solutions.
