Tata Motors Reduces EV Prices By Up To Rs 1.2 Lakh As Battery Prices Fall

Tata Motors Ltd. reduced the prices of its electric vehicles by up to Rs 1.2 lakh as it sees battery prices softening in the future.

“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," Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility Ltd., said in a statement.

Batteries make up a substantial part of the overall cost of an EV. As a reduction in prices gets passed on to customers, it'll bring the cost of these models closer to their cheaper fossil fuel-powered counterparts.

Nexon.ev will get a price reduction of up to Rs 1.2 lakh, while Tiago.ev's price will reduce up to Rs 70,000.

Currently, the base model of Nexon.ev comes at a starting price of Rs 14.7 lakh, while the Tiago.ev base model comes at a starting ex-showroom price of Rs 8.69 lakh in Delhi.

After the price cut, Nexon.ev will start at Rs 14.49 lakh and Tiago.ev at Rs 7.99 lakh.

The internal combustion engine-powered base model of the Nexon starts at Rs 8.15 lakh, while the base price for the Tiago is Rs 5.65 lakh.

The company said it will also stick with the Punch.ev introductory prices unveiled at its launch in January, factoring in the reduction in battery prices.

According to BloombergNEF, after falling to a record low of $139/kWh in 2023, the battery prices are expected to slide further to $133/kWh in 2024.

While reduction in battery prices was attributed to improvement of scale and technological innovation earlier, this year the primary reason is expected to be a rise in manufacturing capacity amid lower-than-expected demand globally.

Tata Motors has a share of over 70% in India's electric passenger vehicle market.

Shares of the company were trading 0.34% higher at Rs 914.70 apiece at 11.35 a.m., compared with a 0.56% rise in Nifty 50.