On Wednesday, India’s sole manufacturer of electric vehicles (EVs), Tata Motors (TAMO.NS), unveiled the country’s most affordable EV, priced at just over $10,000.
Tata dominates the EV market in India thanks to government subsidies and high import taxes.
The company’s decision coincides with rival Mahindra & Mahindra’s (MAHM.NS) intentions to introduce its first electric sport-utility vehicle (SUV) in January and is already in negotiations with investors to raise up to $500 million for its EV subsidiary.
The sticker price for Tata’s Tiago EV, an electric variant of the company’s well-known Tiago hatchback, will start at 849,000 rupees ($10,370). India, the fourth-largest auto market in the world, sells the majority of its vehicles for less than $15,000.
That is significantly less expensive than the second most affordable EV in India, the electric Tigor compact sedan, which has a starting price of about $14,940. However, some EV models in China have starting prices as low as 32,800 yuan ($4,525).
According to Shailesh Chandra, general director of Tata Motors Passenger Vehicles and its EV business, The Tiago EV is a ‘compelling proposition’ because its operating costs are predicted to be around one-seventh those of the gasoline variant.
The goal, according to Chandra, is to include connected car features and other cutting-edge technologies while keeping the price reasonable. ‘We are not chasing to be the lowest cost,’ he added.
The ‘disruptive’ pricing of the automobile, according to Chandra, would give Tata access to new markets and business potential in smaller towns and cities.
The issue of finding the proper pricing is constant, according to Chandra, who added that the present sticker price was only valid for the first 10,000 customers.
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