Tata Motors Cuts EV Prices By Up To Rs 1.2 Lakh (Image: Tata Motors)

Tata Motors has made a surprising move in the electric vehicle (EV) market by reducing the prices of its cars by up to Rs 1,20,000. The popular automaker announced the price cut on Tuesday for its Nexon and Tiago EV models. This price cut is the result of a decline in the prices of battery cells used in the manufacturing of these cars.

Tata Motors said that they made this move with the objective of making EVs more accessible to customers in the country. Tata said that Nexon.ev gets a price reduction of up to Rs. 1.2 lakh, and for Tiago.ev, the price cut is up to Rs. 70,000. After the price cut, the Tiago EV arrives in the Indian market with a starting price of Rs 7.99 lakh. Meanwhile, the price of the Nexon EV now starts at Rs 14.49 lakh, and the long-range Nexon EV will be available with a starting price of Rs 16.99 lakh.

At the same time, the automaker has not reduced the price of the recently launched Punch EV. “Inaugural prices of the recently launched Punch.ev remain unchanged as they already factor in reduction in battery price in the foreseeable future,” said Tata in its statement.

Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility Ltd (TPEM), said that the company”s mission is to accelerate the mainstream adoption of EVs by making them more accessible nationwide. Vivek Srivatsa also said that 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,” Vivek Srivatsa added.