Tata Motors’ strategy of adopting a very competitive pricing for the Nexon EV will prompt its rivals — Maruti Suzuki India as well as Mahindra and Mahindra (M&M) — to package their offerings in a manner that attracts buyers.
High pricing of electric vehicles (EVs) has been a key deterrent for buyers. With a price starting from Rs 13.99 lakh to Rs 15.99 lakh, the Nexon is the first EV offering in the mass sports utility vehicle (SUV) segment.
M&M is set to unveil its electric compact SUV version of the XUV300, while Maruti will be taking wraps off the electric variant of the Wagon R at the Auto Expo next month.
Earlier this month, MG Motors launched its EV vehicle, the ZS. Over the next two years, Tata Motors will introduce four more EV models, including two SUVs, a sedan and a hatchback, as it seeks to be in the leadership position.
“The combination of electric and SUVs at a competitive price bodes well for Tata Motors and it will gain from the first-mover advantage in the mass SUV segment,” said Puneet Gupta, associate director at IHS Markit. There is a big market that revolves around this pricing, he said.
Powered by the company’s Ziptron technology, the Nexon EV offers a range of 312 km on a single charge and boasts of an efficient high-voltage system, fast-charging capability and more than 30 connected features. The model goes on sale from across 60 authorised dealerships in 22 cities, starting Tuesday.
Tata Motors has been able to price the model attractively because of the high-level of localisation, said Shailesh Chandra, president, electric mobility business.