Tata Nexon EV and Tiago EV price cuts: Making electric mobility more affordable

Tata Nexon EV and Tiago EV price cuts: Tata Motors, part of its subsidiary Tata Passenger Electric Mobility Limited (TPEM), has announced to reduction in the prices of its Nexon EV and Tiago EV electric vehicles. This move aims to democratize electric mobility in India by focusing solely on new acquisitions.

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New Prices (February 2024): Tata Nexon EV and Tiago EV price cuts

Vehicle	New Prices (February 2024)
Nexon EV	Reduced to Rs. 1.2 lakh
Thiago EV	Reduced to Rs. 70,000
Tiago EV	The base model starts at Rs. 7.99 lakh

Tata Nexon EV New Prices, Tiago EV New Prices in Feb 2024

Reasons for a price reduction:

There has been a recent reduction in the price of batteries, which forms a significant part of the cost of electric vehicles. Tata Motors aims to pass on these benefits directly to customers.
TPEM Commercial Director Vivek Srivatsa explains the reason for the price adjustment. Tata Nexon EV and Tiago EV price cuts 2024

Impact on the Electric Vehicle Market in India:

This is expected to contribute to the further development of the electric vehicle industry.
Tata Passenger Electric Mobility Limited already has a dominant market share (over 70%) in India. This reflects Tata Motors commitment to promoting the widespread adoption of electric vehicles across the country.

Electric vehicle market growth:

The electric vehicle segment is expected to witness an impressive growth of 90% in the calendar year 2023. In contrast, the conventional passenger vehicle sector grew by 8%. Sales of electric vehicles in January 2024 increased by 100% compared to the same period last year.

Company Mission and Strategy:

Tata Motors aims to accelerate the mass adoption of electric vehicles by offering a variety of body styles, product variants and prices. The price cut is part of a strategy aimed at attracting a wider customer base in the electric vehicle market. Revised and affordably priced, the Nexon EV and Tiago EV could be even more attractive options.

Market Review Tata Nexon EV and Tiago EV price cuts:

The Decline in sales of electric vehicles in Germany. Sales of electric vehicles in Germany fell by a huge 55% in January 2024. This reflects the problems of the automotive world in general.

Benefits and tax implications:

The government ended tax incentives on the purchase of electric vehicles in December 2023.
As soon as the profits ended, there was a huge decline in the sales of electric vehicles. On the contrary, positive dynamics were observed in sales of fuel cars.

Market Reaction	Sales Decline
New Electric Vehicles	54.9%
Plug-in Hybrids	19.6%
Gasoline Cars	9.1%
Diesel Cars	9.5%
Overall Automobile Market	11.7%

Market reaction before Tata Nexon EV and Tiago EV price cuts

Solution:

The expiration of tax incentives significantly contributed to the decline in electric vehicle sales. However, several factors influenced the overall decline.