Automakers are slashing prices in the Indian electric car industry; Tata Motors is the most recent to do so, lowering the price of its two well-liked EV models by up to Rs 1.2 lakh.

• Highlights: 
  Tata Motors cuts Nexon.ev and Tiago.ev prices by up to Rs 1.2 lakh, pushing for wider EV adoption.
• Rising acceptance of electric cars in India due to lower costs and reduced range anxiety.
• Tata Motors sees a 69% year-on-year increase in EV sales, plans to introduce ten new models, and establish EV-only stores to boost adoption.

The nation's top e-carmaker said on Tuesday that the Nexon.ev will now start at Rs 14.49 lakh and the Tiago.ev at Rs 7.9 lakh, "passing on the benefits" of a fall in battery pricing to consumers as it strives to make EVs more accessible for their rapid adoption.

Tata Motors slashed the price of the Nexon.ev by as much as Rs 85,000 in January 2023. 

At the time, the business claimed that the decision was made in response to benefits it had been receiving over the previous few months, including new locations, government initiatives, and increased production efficiency. 

Just 2% of cars sold in India are currently electric models, but consumers are growing less apprehensive about the higher upfront expenses due to cheaper ongoing expenditures and a decrease in range anxiety.

Due to "the soothing of anxiety about range," more consumers are now purchasing lower-end electric vehicle models, according to Srivatsa, who spoke with Business Standard earlier this month.

"The customer's first consideration when purchasing an EV is range." However, we are witnessing some maturity in that area. People are starting to realize that they will use their cars primarily in the city and perhaps travel once a year. They are now adjusting their expectations appropriately.

According to a Tata Motors salesperson, many buyers are persuaded to choose the higher-end ICE version of a car when comparing its EV and ICE models because the price difference between them can reach lakhs. According to the dealer, "more people would choose EVs as EV pricing becomes more attractive because the cost of running is minimal."

Sales of electric vehicles (EVs) at Tata Motors increased to 6,979 units in January, up 69% year over year (including exports). The company's total sales of passenger vehicles, including ICE vehicles, increased by 12% year over year to 54,033 units.

While EV sales have increased significantly in recent years, Srivatsa stated: "Our goal is to hasten EV adoption by increasing their accessibility across the country." Our portfolio already provides our smart, feature-rich EVs with an extensive selection of body designs, ranges, and price points. We think that the best-sellingTiago.ev and Nexon.ev become an even more appealing offer to draw in a wider consumer base at these reasonable costs.

Tata Motors intends to provide ten electric vehicles in its lineup over the next three to four years after opening EV-only stores in September. 

EV sales have seen a robust growth momentum, far surpassing the growth of the passenger vehicle market as a whole.