Tata Motors has announced a price cut on Nexon EV and Tiago EV. The price of the Tiago EV has been dropped by ₹70,000 and now it starts at ₹7.99 lakh ex-showroom. The Nexon EV gets a price reduction of up to ₹1.2 lakh. So, now the electric sub-compact SUV starts at ₹14.49 lakh ex-showroom whereas the Long Range version starts at ₹16.99 lakh ex-showroom. The reduction in price is attributed to the slight reduction in the prices of the battery cells used in these electric vehicles.
One of the biggest cost factors in electric vehicles is the battery pack. Recently, the prices of the battery cells have slightly reduced, and because of this, we see a drop in the prices of electric vehicles. In fact, this is the very same reason why the Punch EV has not received any price cut. According to Tata Motors, the inaugural prices of the recently launched Punch.ev are unchanged as they already factor in a reduction in battery price in the foreseeable future.
Speaking about this price reduction, Mr. Vivek Srivatsa, Chief Commercial Officer, TPEM, said, “Battery costs constitute a substantial part of the overall cost of an EV. With battery cell prices having softened in the recent past and considering their potential reduction in the foreseeable future, we have chosen to proactively pass on the resulting benefits directly to customers. While EVs have grown rapidly over the last few years, our mission is to accelerate the mainstream adoption of EVs by making them more accessible nationwide. Our portfolio already offers a wide choice of body styles, range and price points for our smart, feature-rich EVs. We believe that at these accessible prices, the best-selling Nexon.ev and Tiago.ev become an even more compelling proposition to attract a larger pool of customers.”
This price cut by Tata Motors is a strategic move to make electric vehicles more accessible and appealing to a larger pool of customers. The reduction in battery prices has led to a drop in the overall price of the electric vehicles, making them a more compelling option for potential buyers.
