Tata Motors on Tuesday said its electric vehicle arm has reduced prices of two models -- Nexon.ev and Tiago.ev -- by up to Rs 1.2 lakh on account of reduction in battery cost.

The auto major has cut the price of Nexon.ev by up to Rs 1.2 lakh and now the model price starts at Rs 14.49 lakh.

Similarly, the company has reduced the prices of Tiago.ev by up to Rs 70,000 with the base model now starting at Rs 7.99 lakh, Tata Motors said in a statement.

Introductory prices of the recently-launched Punch.ev remain unchanged as they already factor in reduction in battery cost in the foreseeable future, it added.

"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," Tata Passenger Electric Mobility (TPEM) Chief Commercial Officer Vivek Srivatsa said.

While EVs have grown rapidly over the last few years, the company's mission is to accelerate the mainstream adoption of EVs by making them more accessible nationwide, he added.

EVs have shown a strong growth momentum and are substantially outperforming the overall passenger vehicle industry growth, Tata Motors said.

In 2023, the EV segment grew by over 90 per cent against the 8 per cent growth recorded by the PV industry, it said.

This growth momentum has continued in 2024 as well with EV sales registering a 100 per cent year-on-year growth in January 2024.

TPEM with over 70 per cent market share is the leader in this fast-growing segment, the automaker stated.

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