Tata Motors shares slip as prices of Nexon, Tiago EV models are cut by up to ₹1.2 lakh

Tata Motors share price dropped nearly a percent on Tuesday, February 13, as the Tata Group auto major's electric vehicle (EV) arm announced a price cut for EV models by up to ₹1.2 lakh.

At 2 pm, Tata Motors share price quoted at ₹904.30, down 0.8% on NSE. The scrip opened at ₹911.60 and hit the day's low at ₹894. The stock has gained 11% in the last one month, while the three-month return on Tata Motors is over 38%.

Tata Motors has cut the price of its top-selling electric vehicle, Nexon.ev by up to ₹1,20,000. The company also reduced the price of its small electric car, Tiago.ev by up to ₹70,000.

After the price cut, Nexon.ev will now be available at a starting price of ₹14.49 lakh ex-showroom, while Tiago.ev will begin at ₹7.99 lakh ex-showroom.

According to the Chief Commercial Officer of Tata.ev, Vivek Srivatsa, the TPG-backed company has cut the prices of its aforementioned two popular electric cars to directly pass on the benefits of slightly declining battery cell prices to customers.

“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 Srivatsa in a press release dated February 13, 2024.

While EVs have grown rapidly over the last few years, Tata Motors’ EV arm has focused on accelerating the mainstream adoption of EVs by making them more accessible nationwide. The company believes that its best-selling cars Nexon.ev and Tiago.ev will attract an even larger pool of customers at such accessible prices.

Tata Motors signed a Memorandum of Understanding (MoU) with Bandhan Bank on Monday, for providing financing services to commercial vehicle buyers. As per the MoU, Bandhan Bank will offer convenient financing solutions to customers across the commercial vehicle portfolio of Tata Motors.