Tata Motors has launched India’s lowest priced electric car at a little over $10,000 as the country’s only electric vehicle (EV) maker looks to draw in more buyers.
Tata leads India’s EV market, helped by government subsidies and high tariffs on imports, Reuters news report said.
Tata’s Tiago EV, an electric version of its Tiago hatchback, will have a sticker price starting from 849,000 rupees ($10,370). The bulk of cars sold in India, the world’s fourth-largest car market, are priced below $15,000.
That is much cheaper than India’s next most affordable EV – the electric version of Tata’s Tigor compact sedan which starts at around $14,940. China, however, has some EV models that start as low as 32,800 yuan ($4,525).
The Tiago EV’s operating cost is expected to be about a seventh of the gasoline version, making it a compelling proposition, said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and its EV subsidiary.
Tata, India’s third-largest carmaker, last year raised $1 billion from TPG for its EV unit at a $9.1 billion valuation, and has outlined plans to launch 10 electric models by March 2026.
India’s electric car models make up just 1 percent of total car sales of about 3 million a year, but the government wants to grow this to 30 percent by 2030.
The cheapest version of the Tiago EV – Tata’s third electric car – will have a driving range of 250 kilometres (155 miles) on a single charge, while a more expensive version will offer a range of 315 km.
Chandra said data from existing Tata EV owners showed average daily use of about 50 km, which prompted the company to provide a shorter driving range to keep the price down.