Despite the widespread belief that electric cars are expensive, recent price cuts by manufacturers like Tata Motors and MG Motor suggest otherwise. With these reductions, the additional cost of purchasing an EV could be recouped in less than a year, particularly considering their low running costs per kilometer and subsidized registration charges.
Tata Motors, India's top electric car seller, announced significant price cuts for the electric versions of Nexon SUV and Tiago mini. The Nexon EV's entry variant sees the steepest reduction of Rs 120,000, now priced at Rs 14,50,000 ex-showroom, while the Tiago's base model is reduced by up to Rs 70,000, now priced at Rs 800,000. Tata attributes these reductions to passing on "battery price reduction benefits" to customers. “Battery costs constitute a substantial part of the overall cost of an EV. With battery cell prices having softened in the recent past and considering their potential reduction in the foreseeable future, we have chosen to proactively pass on the resulting benefits directly to customers,” said Vivek Srivatsa, chief commercial officer of Tata’s passenger car electric mobility division.
The annual running cost of an electric Nexon, covering approximately 15,000 km, amounts to Rs 15,000. In comparison, the diesel variant costs Rs 96,021 annually, and the petrol variant costs Rs 120,000. These figures are calculated for Delhi, where diesel is around Rs 90 per liter, petrol at Rs 97 per liter, and electric vehicle charging costs Rs 10 per unit.