Mahindra's XUV400 Drives Down Price Of Nexon EV As Competition Intensifies

As major automotive (auto) manufacturers line up electric cars for the Indian market, segment leader Tata Motors has decided to significantly slash the prices of its popular Nexon EV by Rs 31,000-85,000 amid intensifying competition. This move by Tata Motors comes a day after Mahindra & Mahindra (M&M) launched its much-awaited compact electric sport utility vehicle — the XUV400 — at a competitive price point.

At Rs 18.99 lakh, the Nexon’s top variant is equivalent to M&M’s XUV400’s top trim. Tata Motors has also reduced the price of its low-end variant by Rs 50,000 to Rs 14.49 lakh (ex-showroom), making it cheaper by Rs 1.5 lakh than the XUV400’s low-end variant.

Tata Motors says the move was taken after the company received benefits from additional locations, government initiatives, and production efficiency in the past few months.

“Our strategy has been to make our products more attractive to customers and build a range from the Tiago right up to the Nexon in a cohesive manner. Our smart engineering and government incentives have allowed us to achieve this disruption. We are just passing it on to customers,” Vivek Srivatsa, head-marketing, sales and service strategy, Tata Passenger Electric Mobility, told Business Standard.

Tata Motors has three electric cars in the Indian market, against one each from MG Motor India and M&M. MG Motor’s ZS EV starts at a price range of Rs 22.98 lakh and goes up to Rs 27 lakh. M&M’s e-Verito starts from Rs 9.13 lakh and goes up to Rs 9.46 lakh.

In December, Tata Motors became the only manufacturer to sell 50,000 electric vehicles (EVs) in the Indian market.

According to VAHAN data, Tata Motors has over 80 per cent market share in the Indian EV segment. It is followed by MG Motor, which has about 10 per cent in the segment.

According to industry analysts, Tata Motors’ move is aimed at keeping prices competitive.

“Since Tata Motors is the largest EV player in the Indian market, it wants to be price-competitive in every segment. With this move, it has shown it does not want to cede ground to other players,” said Puneet Gupta, director, S&P Global Mobility.

At present, Tata Motors has three EVs in its portfolio — the Tiago, the Tigor, and the Nexon — catering to customers wanting a car priced between Rs 8.49 lakh and Rs 18.99 lakh. Its entry-level Tiago EV arrives at an introductory price of Rs 8.49 lakh and goes up to Rs 11.79 lakh. The Tigor EV starts from Rs 12.49 lakh and goes up to Rs 13.75 lakh.

“The price reduction came not just because of competition from the XUV400, but other automakers eyeing to launch products in the same price range. But Tata Motors will benefit from its leadership position in the EV space, along with upcoming launches,” said Mansi Lall, research analyst, Prabhudas Lilladher.

Tata Motors has also unveiled the electric version of the Harrier, the Sierra, and the Avinya, which will compete with cars from MG, Kia, and BYD.