Tata Passenger Electric Mobility Ltd (TPEM) has announced a substantial reduction in the prices of its popular electric vehicles (EVs) - Nexon.ev and Tiago.ev. This strategic decision aims to make EVs more accessible to a broader segment of Indian customers.
The key highlights of the price reduction include a substantial cut in the prices of the Nexon.ev, India's most feature-rich EV, by up to INR 1.2 lakh. The Tiago.ev, recognised as India's fastest-selling EV, also sees a significant reduction of up to INR 70,000, with the base model starting at an attractive price of INR 7.99 lakh.
Vivek Srivatsa, Chief Commercial Officer of TPEM, explained the rationale behind the price reduction, stating, '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.'
The reduction in prices reflects Tata's commitment to accelerating the mainstream adoption of EVs in India. Vivek Srivatsa emphasised the brand's mission to make EVs more accessible nationwide, stating, '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.'
The electric vehicle segment in India has been witnessing strong growth momentum, significantly outperforming the overall passenger vehicle industry. In CY2023, the EV segment recorded an impressive growth rate of over 90%, in contrast to the 8% growth seen in the passenger vehicle industry. This positive trend has continued into CY2024, with EV sales registering a remarkable 100% year-on-year growth in January 2024.
TPEM, holding over 70% market share, has established itself as the market leader in this rapidly expanding segment. The reduction in prices aligns with Tata's commitment to staying ahead in the competitive EV market, offering not only a wide range of options but also ensuring affordability to encourage more consumers to embrace electric mobility. This move is expected to further solidify Tata's position in India's growing EV landscape.