Tata Motors has announced substantial price reductions on two of its most popular electric vehicle models, the Nexon EV and Tiago EV. The price cuts come as Tata passes on the benefits of declining battery cell costs to customers.
The Nexon EV, currently India’s best-selling electric car, sees price drops of up to Rs 1.20 lakh. The starting price for the base Medium Range variant is now Rs 14.49 lakh, Rs 25,000 less than before. But more significant is the price cut for the Long Range top-spec Nexon EV, which now starts at Rs 16.99 lakh, a massive Rs 1.20 lakh lower than the previous price.
The Tiago EV also gets a price cut of up to Rs 70,000. The entry-level Tiago EV will now retail at Rs 7.99 lakh, expanding its price advantage over rivals like the MG Comet EV. Tata has clarified prices for the recently launched Punch EV remain unchanged as the model was priced factoring in lowered battery costs.
According to Tata, the price reductions reflect the softening of battery cell prices globally in recent months. By passing these savings to customers, the company aims to accelerate EV adoption amidst high fuel prices. This strategy has paid rich dividends for Tata as it dominates India’s fledgling electric car market.
The price cuts come at an opportune time as competition in the mass-market EV segment heats up. The Nexon EV’s rival, the Mahindra XUV400 saw its price cut to Rs 17.49 lakh recently for the long-range version, undercutting the Nexon. However, with the new reduced pricing, the base Nexon EV LR now comfortably beats it at Rs 16.99 lakh.
The affordability-focused Tiago EV also gets some breathing room against the Rs 6.99 lakh MG Comet EV, which received a substantial price cut earlier. The repositioned Tiago EV starts at Rs 7.99 lakh, retaining its competitive edge.
As battery costs decline in the future, more price cuts could fuel rapid mainstream adoption of EVs in price-sensitive India. With scale, Tata can drive down costs further and hasten the disruption of combustion vehicles. The brand is gearing up to launch other electric models this year, like the Curvv crossover, Harrier EV, and Altroz EV.
With ambitious EV targets, Tata is ramping up investments in new platforms, battery tech and charging infrastructure. As the pioneer and leader of India’s EV transformation, Tata’s aggressive push can drive an EV revolution with affordable, reliable electric mobility solutions. Lower running costs coupled with decreasing upfront prices will convince many buyers to make the switch to electric sooner than later.
