Battery Prices Come Down, Tata Cuts EV Prices

Good news for all the EV car enthusiasts! The prices of batteries are coming down. This means that the prices of EVs will come down further. Recently, Tata Motors announced that the Nexon EV is being offered with a Rs 3 lakh price reduction. The company has highlighted that it is passing on the benefits of battery price reduction to its customers. Apart from Tata Motors, Mahindra is also offering a Rs 3 lakh reduction on its XUV400 EV.

EV makers offering huge discounts

Recently, TOI reported that many automakers, like Tata Motors, Mahindra Automotive, Ather Energy, and Hero MotoCorp, are offering huge discounts on their respective electric vehicles. It was stated that these discounts are being offered due to the stock pile-up caused by overproduction during the festive season.

It was also highlighted that these automakers are offering such massive discounts due to the need to meet the CAFE (Corporate Average Fuel Efficiency) norms. For those who may not be aware, CAFE norms evaluate an automaker’s entire lineup instead of assessing any single model.

If a company is found violating CAFE norms in India, a fine of Rs 25,000 per vehicle for a shortfall below 0.2 litres per 100 km is imposed. Additionally, this fine increases to Rs 50,000 per vehicle if the OEM (Original Equipment Manufacturer) is found exceeding the threshold.

Coming back to the topic of automakers offering heavy discounts, it was reported that Tata Motors and Mahindra Automotive are offering discounts of up to Rs 3 lakh. Also, major two-wheeler manufacturers are offering 10-20 percent discounts on their popular models.

Real reason behind huge discounts

Following the reports highlighting that these discounts are being offered by automakers due to the above-mentioned reasons, Tata Motors issued a clarification. It stated, “Tata Motors has proactively taken a price reduction of up to Rs 3 lakh on the Nexon.ev, passing on the benefits of battery price reduction to its customers.”

It highlighted that the reasons listed by TOI are not true and that the price reduction is simply due to the fact that battery prices are coming down. At the moment, Mahindra Automotive, Hero MotoCorp, and other OEMs have not given any such clarification.

Why are EV battery prices going down?

Now, you may be wondering why the prices for electric vehicles and their batteries are going down. Well, the answer is that the overall pricing for the raw materials used in the production of batteries has reduced. Also, it has been reported that this price reduction is due to the overproduction of battery cells.

Should you buy an EV car or two-wheeler now?

If you are on the fence about whether you should buy an EV car or two-wheeler at the moment, we would like to suggest that now is the best time to buy an electric vehicle. The primary reasons are the heavy discounts being offered by various automakers. Additionally, brands are offering exchange bonuses as well.

Apart from these, the cost of registration and GST on electric vehicles is far less than that on internal combustion engine vehicles. Also, the cost of ownership of EVs is a lot less than that of traditional ICE vehicles. Lastly, the battery technology and quality of electric vehicles are improving, which makes them a good buy at the moment.