Homegrown automaker Tata Motors has recently announced that it will hike the price of its cheapest electric vehicle Tiago.EV by up to four percent from January 2023. Currently, the Tiago.EV, which was launched earlier this year, is offered at starting price of Rs 8.49 lakh (ex-showroom, India).
This price hike was already expected as the Tiago.EV was offered at an introductory price for the first 10,000 customers and was subsequently extended to 20,000 customers amid the recorded high demand from early buyers.
Increasing battery costs
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passengers Electric Mobility, while talking about the price increase, said the price hike isn’t just related to the introductory prices but is due to the rising battery costs. He said, “Battery prices have increased by 30-35 percent, and it is not fully passed on to the buyers.”
The company still hasn’t disclosed the exact amount, but it is expected to raise the cost of Tiago.EV by around Rs 30,000-35,000.
Cost saving
Certain factors allow Tata Motors not to raise the price of the Tiago.EV by a significant amount. He revealed that the electric hatchback shares many components with its petrol counterpart, while components and materials used in the electric drivetrain are common with the company’s other electric offerings like Tigor EV and Nexon EV. This helps the automaker to keep prices in check, added Chandra.
While the bookings for Tata Tiago EV are quite high - up to 35 percent of all Tiago hatchbacks (including the ICE version), bookings for other Tata’s electric line-up stands nearly at 20 to 25 percent mark, revealed Chandra. Furthermore, Tata Motors also announced its plans to start deliveries of the Tiago.EV by mid-January and to complete delivery of the first batch within five months.
(Edited by : Abhishek Jha)
First Published: Dec 22, 2022 4:43 PM IST
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