Tag: ev prices

Tata Motors Announces First EV Price Cuts in India; Electric Car Prices Lowered By Up to 8 Percent

Indian automaker Tata Motors’ electric vehicle (EV) unit on Tuesday said it has reduced prices of its cars by up to 120,000 rupees (~$1,450) in what is the first instance of a price cut by an electric carmaker in the country.

Electric variants currently form just 2% of car sales in India, as buyers are wary about the higher upfront costs despite lower running costs and as range anxiety persists.

“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,” said Vivek Srivatsa, Chief Commercial Officer at the TPG-backed Tata Passenger Electric Mobility.

The price of the top-selling Nexon.ev is now down 1.4% to 1.45 million rupees. Prices previously began at 1.47 million rupees, according to Tata’s website.

The company, which dominates EV car sales in India, also cut the price of its electric small car Tiago by 70,000 rupees. The base version now costs around 8.1% lower at 799,000 rupees.

Launched in 2020, the Nexon.ev was India’s cheapest electric SUV until the launch of Tata’s Punch EV at 1.2 million rupees in 2024.

EV sales have slowed globally as well, with U.S. carmaker Tesla leading a price-cut war to maintain its sales lead over rivals such as China’s BYD.

“Tata’s price cut in India could prompt its rivals to also price their cars more competitively and launch newer EVs at aggressive prices,” said Jay Kale, Vice President, Elara Capital.

However, this is in stark contrast to India’s EV two-wheeler market, in which IPO-bound Ola Electric and Hero-backed Ather are locked in a price war.

Tata, which began EV-only dealerships in September, plans to have 10 electric cars in its portfolio over the next three to four years. It also aims to bring up EV sales to 25% of its total car sales by 2025 from 9.3% in fiscal 2023.

Shares of Tata Motors, which competes with the likes of Mahindra and MG Motor, fell as much as 1.9% after the announcement.

© Thomson Reuters 2024

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Smaller EV Prices to Drop in Coming Months as EV Sales Climb, IEA Says

Nearly one in five cars sold globally this year will be electric, with the prices of smaller EV models dropping to rival those of combustion engine cars in North America and Europe by the mid-2020s, the International Energy Agency (IEA) predicted on Wednesday.

The agency raised its EV sales forecasts in part because of the US Inflation Reduction Act, which supports green industry and subsidises consumers’ purchase of electric vehicles (EVs), IEA executive director Fatih Birol said on a media call.

China features prominently, making up half the EVs on the road worldwide including battery-electric cars and plug-in hybrids, and with 60 percent of EV sales last year taking place there, according to the IEA’s annual outlook on EVs.

The country has also seen prices for some smaller EV models edging lower towards those of their combustion engine equivalents, said the IEA’s energy technology policy head, Timar Guell.

Electric car sales globally are expected to surge 35 percent this year to 14 million, the report said, comprising 18 percent of the passenger car market, up from just 4 percent in 2020.

“Our current expectation is that we can see price parity in small and medium-sized electric cars in North America and European markets somewhere in the mid-2020s… for larger cars like SUVs and pick-ups, purchasing parity is likely to come later, probably into the 2030s,” Guell said.

Governments are investing in EV expansion out of concerns over the environment, to boost industrial policy and decrease dependency on oil, demand for which will fall by 5 million barrels a day by 2030 because of the EV transition, Birol said.

SUVs and large cars account for nearly two-thirds of EVs in China and Europe and a greater proportion in the United States.

In emerging and developing economies, two- or three-wheel electric vehicles outnumber cars. Over half of India’s three-wheeler registrations in 2022 were electric, according to the study.

© Thomson Reuters 2023

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