Tata Motors pauses Altroz EV plans. Here's why

Tata Motors launched the updated Altroz premium hatchback in the Indian market earlier this week at an introductory starting price of ₹6.89 lakh (ex-showroom). The premium hatchback now comes available in petrol, diesel and CNG fuel options, while transmission choices include manual, automatic and AMT units. In fact, Tata Altroz is the only premium hatchback in the Indian market that comes with a diesel engine.

The Maruti Suzuki Baleno, Hyundai i20 and Toyota Glanza rival was supposed to receive an all-electric iteration as well. It has long been speculated that Tata Motors, which currently holds the lion's share in the Indian electric passenger vehicle market with models such as Tiago EV, Tigor EV, Punch EV, Nexon EV and Curvv EV, is working on Altroz EV. However, the homegrown car manufacturer has now confirmed that it has paused the plan to launch the Altroz EV temporarily.

Speaking to news agency PTI, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle Ltd and Tata Passenger Electric Mobility Ltd., has said that the company has paused plans to introduce an electric version of the Altroz due to overcrowding in the price segment in which it was envisaged to be positioned.

Tata Motors previously showcased the Altroz EV in a production form. It was supposed to be positioned in the ₹5-8 lakh price bracket. However, the project has been paused due to the changing dynamics in the electric vehicle industry, with the battery prices coming down, Chandra stated. "When we have three products, which are Tiago.ev, Punch.ev, and Nexon.ev supporting the ₹8-15 lakh segment, we did not find a reason to right now position Altroz.ev as a fourth car in that segment, where there is a certain size of that segment," he reportedly said.

Chandra also said that the Altroz EV project jas already reached a certain stage, but the automaker has paused it because at some stage, the PEM felt that a fourth option need not be brought in the ₹8-15 lakh segment at this stage. However, he also added that this doesn't mean that Tata Motors has completely scrapped the project and will not bring the Altroz EV ever. He stated that in future, Tata Motors may bring the EV to a suitable market environment. "In future, if we see that there is a need to bring this car again, we will be open to that option, but for the time being, we are not launching it," he added.

Check out Upcoming EV Cars in India.