Come January 2023 Tata Motors will increase the price of its smallest electric vehicle, the Tata Tiago EV, by up to Rs. 35,000. Launched in September 2022, the car is offered in two range options and five variants, currently priced between Rs. 8.49 lakh to Rs. 11.79 lakh (ex-showroom, India). Speaking with car&bike on the sidelines of the media drive for Tiago EV, Shailesh Chandra, Managing Director Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Limited said that due to rising production costs, the company will increase the price of the Tiago EV in the range of 3-4 per cent.
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Talking about the impending price hike, Shailesh Chandra said, “If you see in the last one year there has been an increase of 30-35 per cent in sale prices. Plus, new regulations have been implemented in December 2022 for battery safety. And because of these reasons production cost has also increased. In fact, the cost has gone up by around 5 per cent due to these factors. However, I can tell you that the price hike will be lower than that, around 3-4 per cent is what we are thinking. So, judging by the price point, I can say that we plan to increase prices in the range of Rs. 30,000 to Rs. 35,000.”
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Although the prices for the Tiago EV were announced in September, deliveries for the car will begin from January 2023, and the price revision will also happen around that time. Chandra expects the updated prices to be announced sometime in the first half of January. Now, while the current booking numbers are unknown, within two months of the price announcement, Tata has garnered 20,000 bookings for the electric hatchback. And Chandra has confirmed that these 20,000 customers will get price hike protection.
Tata Motors has confirmed that the first 20,000 customers who have booked the car will get price hike protection.
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Change said, “The first 20,000 bookings will be protected by the price hike, but beyond that, the new prices will apply. That’s because the value proposition of the Tiago EV has right now, and we don’t want to lose that. This is why we do not want to pass on the entire burden of the rise in production costs to our customers. The current market expectations (around price hike) that I see is around Rs. 50,000 to Rs. 1 lakh, however, we don’t what to do that. We want the public interest to stay with the Tiago EV, which will help maintain the right balance that I always talk about.”
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As mentioned earlier, Tata Motors is offering the Tiago EV with a choice of two battery packs. Buyers can opt for either a 19.2 kWh battery pack or a larger 24 kWh battery pack. The former offers a claimed range of up to 250km per charge (MIDC) while the larger pack offers a range of up to 315 km (MIDC). The electric motor output also varies depending on the battery pack. The smaller unit is paired with a 45 kW motor that develops 105 Nm of peak torque while the larger pack comes paired with a stronger 55 kW motor developing 114 Nm.
