Tata Motors slashes EV prices by up to Rs 1.2 lakh as battery cost dips

Tata Motors' electric vehicle arm has reduced the prices of two models Nexon.ev and Tiago.ev by up to Rs 1.2 lakh on account of reduction in battery cost.

The auto major has cut the price of Nexon.ev by up to Rs 1.2 lakh; now the model's price starts at Rs 14.49 lakh.

The company has also reduced the price of Tiago.ev by up to Rs 70,000; the base model now starts at Rs 7.99 lakh, Tata Motors said in a statement.

Introductory prices of the recently-launched Punch.ev remain unchanged as they already factor in reduction in battery cost in the foreseeable future, said the company.

"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," said Tata Passenger Electric Mobility's Chief Commercial Officer Vivek Srivatsa.

While EVs have grown rapidly over the last few years, the company's mission is to accelerate the mainstream adoption of EVs by making them more accessible nationwide, he added.

EVs have shown a strong growth momentum and are substantially outperforming the overall passenger vehicle industry growth, said Tata Motors.

In 2023, the EV segment grew by over 90% against the 8% growth recorded by the PV industry, it said.

This growth momentum has continued in 2024 as well with EV sales registering a 100% year-on-year growth in January 2024.

Tata Passenger Electric Mobility, with over 70% market share, is the leader in this fast-growing segment, the automaker stated.