Tata Motors has slashed the prices of the EV versions of its sub-compact SUV Nexon and hatchback Tiago.
The Nexon EV gets price cut of up to Rs 1.2 lakh, reducing the starting ex-showroom price to Rs 14.49 lakh. The long-range version now starts at Rs 16.99 lakh (ex-showroom).
The Tiago EV now comes with a starting ex-showroom price of Rs 7.99 lakh after the cost was cut by Rs 70,000.
A detailed variant-wise price of Tata's EV models are still awaited.
Why the price cut?
The cost of battery cells, which forms a significant share of the overall cost of an EV, have come down recently and this has prompted Tata Motors to cut prices of its electric vehicles.
Why Punch EV did not get a price cut?
Tata Motors said that the prices of the Punch EV, which was launched recently, was already pegged in accordance with the decrease in battery cost and hence the model will not get a price cut like Nexon and Tiago.
“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, Chief Commercial Officer, TPEM, said, "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.”