BANGALORE (Reuters) – Tata Motors’ electric vehicle (EV) unit has slashed the price of its models by up to 120,000 rupees (1,348 euros), the first such cut by an Indian automaker.
EVs currently account for just 2% of car sales in India, with buyers wary of higher upfront costs and fearful of loss of range.
“As battery cell prices have come down recently and given their potential reduction in the foreseeable future, we have chosen to proactively pass on the resulting benefits directly to customers,” said Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility.
The entry price of the Nexon.ev, the best-selling model, fell 1.4 percent to 1.45 million rupees from 1.47 million rupees previously, according to Tata’s website.
Tata Motors, which dominates electric car sales in India, has also reduced the price of its Tiago small electric car by 70,000 rupees. The base version now costs around 8.1% less, or 799,000 rupees.
The manufacturer, which opened dealerships reserved for EVs in September, plans to offer 10 electric cars over the next three or four years. It also aims to increase EV sales to 25% of its total car sales by 2025, up from 9.3% for 2023.
Tata Motors shares fell as much as 1.9% after the announcement, before stabilizing at a decline of 0.5%.
(Reporting Nandan Mandayam in Bangalore and Aditi Shah in New Delhi, French version Augustin Turpin, editing by Kate Entringer)
Copyright © 2024 Thomson Reuters