Tata Motors to hike Tiago EV prices by up to 4% in January 2023, more planned

Tata Motors will be increasing prices on the Tiago EV from January 2023 by up to four per cent. Shailesh Chandra, Managing Director - Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles, confirmed the development in a recent interaction. The price hike will be applicable to new customers for bookings beyond the 20,000 mark.

The Tata Tiago EV was launched in October this year and opened to an overwhelming response crashing the company’s website for bookings. Launched at ₹8.49 lakh (ex-showroom, Delhi) onwards, the introductory pricing was restricted to the first 10,000 orders but was extended to 20,000 bookings due to the unprecedented demand. Chandra now says that rising input costs of materials including batteries have forced the automaker to hike prices on India’s most affordable EV yet.

Watch: Tata Tiago EV: First drive review

Not just the Tiago EV but Tata Motors’ ICE-powered passenger cars will also witness a price hike next year. The automaker already announced a price increase on its commercial vehicle range, while Chandra said that price increments on the passenger cars will be made in two parts. The rising input costs not only include more expensive raw materials but also the transition to BS6 Phase 2 that will be implemented in April 2023. As a result, a second price hike will take place later in 2023 across Tata’s complete range of vehicles.

The Tata Tiago EV is the last of the Gen-1 models to be introduced by the company. It will now be introducing the Gen-2 range of EVs that will offer about 400-500 km on a single charge. Chandra said that the new line-up will include existing products as well as possibly a new nameplate. The automaker is already working on the Gen-3 range (over 500 km) based on the Avinya and Curvv concepts and will arrive in 2025.

(With inputs from Mint)