Tata Motors to launch EV models across price points; Tiago EV cheapest ₹8.49L

Tata Motors is all braced to introduce a range of EV models across a range of price points as it expects the portfolio to account for more than 30 per cent of its overall sales by the end of this decade.

The home-grown auto major also aims to keep investing on new models with conventional (petrol, diesel) and CNG powertrains as it expects the demand to remain robust even after 2030.

The company on Tuesday launched the electric version of Tiago with introductory prices for first 10,000 customers ranging between ₹8.49-11.79 lakh (ex-showroom).

Also read: Tata Motors to acquire Ford India’s Sanand plant at ₹726 crore

The company said 2,000 units will be reserved for the current owners of Nexon EV and Tigor EV.

Tiago EV is now the most accessible electric passenger vehicle brand in the country and also the most affordable in the company’s electric vehicle range.

The carmaker already sells the EV versions of Tigor and Nexon, prices of which range between ₹12.49-₹19.84 lakh (ex-showroom).

With the launch of Tiago EV, Tata Motors is scaling up its electric sales network in the country to 165 cities from 90 locations currently to cater to expected increase in demand.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles, told PTI that the carmaker is deploying a three-pronged architecture approach for electric vehicles to come up with a portfolio of 10 products in five years.

The company will have products based out of its existing nameplates as well as all new ground-up models to cater to changing requirements of customers, he added.

“We will have a portfolio of products starting from Tiago EV and also go beyond Nexon, so we will have these 10 products at different price points,” Chandra said.

He hinted that the company may introduce an electric product between Tiago and Nexon.
The automaker sells models like premium hatchback Altroz and Punch which fall in the price category of Tiago and Nexon.

“Everything will come in a space of say one to two products every year,” Chandra stated.
The company expects to touch 50,000 units mark in total EV sales this year.

When asked about the company’s product strategy going ahead, he noted: “By end of this decade, government expects electric passenger vehicle sales to account for 30 per cent of the overall sales. We will be above that (30 per cent mark).”

He said the company will continue to work on the combustion engine side if the demand persists. “We have a strong foundation of ICE vehicles and we can’t let it go, which means we will continue to invest in ICE.”

He stated that the funds generated in the passenger vehicle side would only be utilised to nurture the conventional model range.

The earnings from passenger vehicle business would go into expanding the ICE portfolio with new products, powertrains including the CNG range and other alternative fuel powered models going ahead, he added.

“On the EV side, we had a challenge earlier as to how do we service investments in both EV and ICE. We have resolved that with the infusion of external capital and formation of new company so that the investment required in EV is not serviced by the passenger vehicle ICE side,” Chandra said.

Also read: Centre, Tata Motors order separate enquiries after Nexon EV fire incident

The carmaker last year had announced that it will raise USD 1 billion in its passenger EV business from TPG Rise Climate in exchange for compulsorily convertible preference shares to create a portfolio of EVs and dedicated battery electric vehicle (BEV) platforms.

Chandra said that with EV funding secured, the EV business is expected to start generating its own funds few years down the line.

(With inputs from agencies)