Tata Motors Makes Nexon EV Cheaper After M&M's XUV400 Price Reveal
The price cut by Tata Motors ranges from Rs 50,000-85,000 depending on the variant.
Tata Motors Ltd. slashed the price of its Nexon EV to defend market share of the country’s most popular EV on Jan. 17, just a day after Mahindra and Mahindra Ltd. announced the price of its first electric SUV XUV400.
The price cut ranges from Rs 50,000-85,000 depending on the variant. The company will now sell Nexon EV Prime at a starting price of Rs 14.49 lakh and Nexon EV Max at a starting price of Rs 16.49 lakh, which can go up to Rs 18.99 lakh.
In comparison, M&M’s XUV400 can cost anywhere between Rs 15.99-18.99 lakh.
Tata Motors is a leader in the electric passenger vehicle space, with cars such as the Nexon EV, Tigor EV and the recently launched Tiago.EV in its portfolio. It has cornered nearly 90% market share by entering the space early.
The price cuts for Nexon have come under a ‘repositioning’ strategy three years after its launch. In addition to the lower price, the range of the Nexon EV Max variants will be raised to 453 km (MIDC) from Jan. 25. Current customers of the car can opt for the enhanced range after a software upgrade at dealerships from Feb. 15.
When M&M unveiled the XUV400 last year, it said that penetration of electric vehicles is still at lower levels, and it is looking to drive higher penetration instead of grabbing market share from competitors.
M&M expects that a quarter of its total SUV sales will be electric by 2027. It has already unveiled its plans to launch five electric sport utility vehicles.
The first four will be launched between 2024 and 2026, while the launch timeline for the fifth vehicle hasn’t been announced yet. The five SUVs will include the XUV.e8 and the XUV.e9, under the existing XUV badge, with a twin-peak logo in copper.
However, this is the first time that a major carmaker has launched an electric SUV in the same segment as the Nexon EV. Other models from rest of the automakers, such as Hyundai Motor India Ltd., Kia India Pvt. and MG Motor India Pvt., are priced significantly higher.
"Our smart engineering and government incentives have allowed us to achieve this disruption, maintaining the same high level of quality and service our customers expect from us. With this, we are confident that more and more customers will make the switch to e-mobility," Vivek Srivatsa, head of marketing, sales and service strategy at Tata Passenger Electric Mobility Ltd., said in the release announcing the price cuts.