- Tata announces forthcoming price hike of up to 4 percent on its Tata Tiago EV range
- The price hike can make variants dearer by up to Rs 35,000
- Tata Tiago EV is dominating about 30 to 35 percent of total Tiago brand sales
Tata Motors has announced an oncoming price hike for its Tata Tiago EV hatchback in India January 2023 onwards. The Indian car maker has revealed that its most affordable electric vehicle offering will see a bump in price by up to 4 percent from the onset of the coming year 2023. A price hike between Rs 25,000 – Rs 35,000 (depending upon the variant) can be expected on the Tata Tiago EV introductory price. The Tata Tiago EV base price in India at launch was Rs 8.49 lakh (ex-showroom).
Why are Tata Tiago EV prices being increased?
The Tata Tiago EV was launched earlier this year, commanding a price tag anywhere between Rs 8.49 lakh (ex-showroom) for the base XE variant and going up all the way to Rs 11.79 lakh (ex-showroom) for the top-spec XZ+ Tech Lux variant. The prices were valid for the first 10,000 bookings, which was later extended up to 20,000 bookings after the company recorded high demand. However, with the onset of the new year, the prices are now confirmed to change.
On the topic, Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passengers Electric Mobility explained that the prices of battery packs have risen by 30 to 35 percent but the company has refrained from passing it on directly to the customers. The company is also able to keep prices in check as the Tata Tiago EV is heavily based on the Tata Tiago ICE version, while the electronic components are shared with the Tigor EV and the larger Nexon EV. This helps the Indian automaker achieve part sharing that helps keep prices in check thanks to economies of scale.
It has also been noted that the demand for the electric Tiago is quite high, comprising about 30 to 35 percent of all bookings that the Tiago brand receives. This proportion is also higher than that of other EVs, such as the Nexon EV, which records about 20 to 25 percent of the total sales that the Nexon brand commands. Tata Motors is also moving towards rebranding its current EV lineup with the “.EV” nomenclature which is expected to appear on more vehicles soon.