Nexon EV to Comet EV: Here's why prices of these electric cars were reduced

In the bustling automotive landscape of India, a quiet yet significant revolution is underway – the rise of electric vehicles (EVs). While their adoption has been gradual, recent developments have ignited fresh enthusiasm among consumers and industry experts alike. Two automobile manufacturers, Tata Motors and MG Motor India announced a price drop in their electric vehicles.

The announcement of these price reductions has not only captured the attention of consumers but raised a question about the reason behind this strategic shift. Why did these manufacturers decide to slash the prices of their electric vehicles?

One of the biggest cost factors when it comes to electric vehicles is the battery pack. Tata Motors said that they dropped the prices of the Tiago EV and Nexon EV because the prices of the battery packs have softened. Then there is MG who announced that the Comet EV will now start at 6.99 lakh and the ZS EV will be offered in a new Executive variant which is priced at ₹18.98 lakh. All prices mentioned here are ex-showroom. The reason that MG stated is that they have been able to increase localization and improve supply chain and commodity costs.

As more and more automobile manufacturers enter the electric four-wheeler space, the demand for battery cells will increase which means that production will go up will ultimately lead to a drop in prices. Thus, making electric vehicles more accessible and appealing.

In fact, electric vehicles make a lot of sense for people who just want a vehicle for their daily commute or short runs around the city. What still remains a challenge is the charging infrastructure. Yes, there are new chargers that are being opened almost every day but when it comes to home charging, there are still a few challenges that the industry needs to tackle.