Tata Passenger Electric Mobility Ltd, the electric vehicle (EV) arm of Tata Motors, on Tuesday announced a price cut for its Nexon and Tiago electric vehicles (EVs). The company said the price reduction was aimed at making EVs more accessible to Indian customers. The company has a 70 per cent market share in the EV segment.

The Nexon EV gets a price reduction of up to Rs 1.2 lakh and the Tiago EV a cut of up to Rs 70,000.

The base model of the Tiago EV starts at Rs 7.99 lakh after a price reduction.

The price of the Punch EV launched recently remains unchanged as it already factors in battery price reductions in the future, said the company in a statement.

Vivek Srivatsa, chief commercial officer, TPEM, said, “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.” EV sales have registered a 100 per cent annual growth in January 2024.

Auto sales up 15%

The month of January 2024 saw strong sales growth across all vehicle categories, with the overall auto retail market expanding by 15 per cent, according to the Federation of Automobile Dealers Association (FADA).

Two-wheelers led the charge with a 15 per cent growth, followed by three-wheelers at 37 per cent, passenger vehicles at 13 per cent, tractors at 21 per cent and commercial vehicles at a modest 0.1 per cent.

The demand for two-wheelers remained steady, fuelled by continued strength in the rural market.