[DarthVeda]

Originally Posted by sri_tesla

. 5% GST, PLI schemes, and very low battery prices are providing huge benefits to car makers to price their EVs very competitively. But as usual, they are being greedy and trying to increase margins instead of playing the volume game.

Truer words have never been spoken better than this my friend. Seriously, these guys are exploiting the monopoly like all those who did before. They need a kick in the back to wake them up and it's happening.

Even after 4 years of the first Nexon EV launch, both the price and battery sizes are the same as it was then.

Must be the only EV company to do this, I can't think of another EV company, which sold the same car with the same battery capacity.

The less said about the DC fast charging speeds the better.

I hope some day, one Auto "Journos" ask Anand Kulkarni point blank question at a press conference or event asking when will Tata Cars get "Fast" charging and if he says we have from Day 1 then the reply can be "My grandma drinks faster than this car"

[siren373]

This has been a phenomenon that's been playing out globally. Weirdly, Ioniq 5 prices in India were rather revised upwards by 10k this year. Indian EV market has a long way to go before it matures and we start seeing competitive forces driving costs down.

[400notout]

These are not only battery prices related reductions for sure. There's something else cooking at Tata. There was a time when vehicles were delivered only after months of waiting. However when the Nexon facelift was launched the older version was still available and selling at huge discounts. Nexon Max was selling at a discount of 2.6 lakhs! Ever since I purchased my EV in Nov 23 (made available within a week!) , I have been getting frequent emails and whatsapp for EV sales referral. Since the past week I've been getting calls from my showroom asking if I have a new car requirement , I told the madam politely that the car I've bought 3 months ago has discounts of 70k, something which she just didn't get and repeatedly asked me if I still was looking for a new car .I feel they have lot of unsold inventory and they've plain overestimated their sales targets. In my two years of Nexon diesel ownership I've never had any referral communications or sales calls from the showroom. So I think it's not just the MG ZS price slash they might have a serious inventory pileup too.

[qaqa]

Originally Posted by 400notout

These are not only battery prices related reductions for sure. There's something else cooking at Tata....I feel they have lot of unsold inventory and they've plain overestimated their sales targets.

I agree. I was pleasantly surprised to see multiple follow-ups from Tata after my test drive. Even the test drive was offered at doorstep and at my convenience (a public holiday in-fact) without anything more than a phone call. I can see the sales staff under pressure for sure.

If Tata is indeed sitting with piled-up inventory, things can only get worse for them going forward. Once the EV-only Sanand plant starts operations in a couple of months, they will be saddled with huge excess capacity.

I think there will be a lot more price pressure on Tata to get stock moving. I am hoping that Tata EV prices will only get sweeter in the coming months!

[saurabh_v8]

Dear Bhpians,

I feel the price drop is temporary and on account of stiff competition.

Tata EV Cars were any way overpriced by 30% over their ICE cousins which justifies the price drop.

The point to note here is that after the price drop, Tata Nexon's top-end ex-showroom price more or less equals xuv400 top-end which is near Rupees 1.75 Mil.

If the price drop would have been on account of cheaper Battery or components it should be the same across MR and LR ranges respectively and not variant specific.


Regarding Price drops in the future:
1. Currently, there are 0% custom duty on the import of EV components which may be changed in FY 2024-25
2. GST is also capped at 5%
3. Lithium ores in India will result in local production
4. Currently there is no Road Tax in most states for EVs which may be levied soon. This may not impact the ex-showroom price but will definitely impact on road price

I feel the cost of the EV components will decrease by 15-20% but the Government will balance it out by charging GST%, Custom Duties, and Road Tax.

So for a common buyer like us EV prices will increase in the future.
This is just like the made-in-India iPhone is more expensive to buy in India than from the US.

[pgsagar]

Originally Posted by saurabh_v8

I feel the price drop is temporary and on account of stiff competition.

Tata EV Cars were any way overpriced by 30% over their ICE cousins which justifies the price drop.

True. Not just Tata but other cars were overpriced, too. That is the reason they started reducing prices one by one. I think MG fired the first salvo. Its price-drop was the biggest, 3.5L or something. Next up was Mahindra with again a huge price-drop something similar. Now, Tata had to respond and they did. But Tata's price-drop is least. 1.2 L on the highest variants and only 20 K on Tiago EV. They didn't even touch Punch's pricing. This means (my assumption) that there's no room for further reduction under current scenario. Else, they would have reduced in one go and they would have knocked off a little off Punch, too.

I agree with you that future price reductions from manufacturers do not guarantee lesser retail price because it has other taxes loaded on them. Also, incentives like FAME, PLI etc maybe withdrawn by govt. Who knows? We're going into polls now. After emerging victorious for the third time, who knows what new taxes will be slapped on us. Remember crude price crash of 2017 through 2020? Did we get any benefit? Cheaper Russian crude. Again, did we? On the contrary prices traveled north. In short, I don't have any hope of seeing cheaper cars EV or ICE, in future. Also, my worry is that manufacturers forced to reduce prices may delete some features or drop quality. So, best time to buy is now, if anyone asks me.

[ferrarirules]

Early prices were set by Tata as per their will due to lack of competition in the EV space.

First drop in prices came when Mahindra launched XUV400. In Jan 2023, Tata reduced prices of Nexon by Rs 90,000. When they launched Nexon 3.0, they increased prices again because their car was well ahead of XUV400 in features.

Now MG and Hyundai had never been a threat to Tata because their products were way beyond Tata's price point. MG launched Comet that also was priced much higher as compared to Tiago. Now the reason for the same is as follows

1. Hyundai was getting Kona as CKD and hence could not price it lower.
2. MG's funding was blocked by govt as govt didn't allow additional funding from their parent in China. Hence they had to keep higher prices to keep higher margins to sustain their business.

Now coming to round two of price reduction, Mahindra reduced prices again when they launched updated XUV400 as they wanted to cover lost ground to Nexon. MG got investment from Sajjan Jindal providing them the much required capital. Hence they were able to reduce prices.

In summary, are these price reductions a function of reducing battery prices may be or may be not. Pricing in India is a function of what your competitor is selling the product at and is the market accepting the product at that price. So will there be more reductions? - There might be if a new competitor comes to the market and prices their product lower than the incumbents

[volkman10]

MG, Tata EV prices reduced to boost sales; Mahindra holds steady.

Apart from the price cuts, unsold MY2023 stocks are available with huge discounts and benefits that make buying a Tata or MG EV even sweeter.

In a bid to push inventory and achieve sales targets, mass market brands like Tata Motors and MG Motor India have slashed prices of their popular models.

dealers have leftover units of the pre-facelift Nexon EV and also MY2023 stock of the facelifted model, which were available with sizeable discounts.

The uniquely styled Comet EV is a relatively slow seller with average monthly sales of 550 units. Prices for the Comet are relatively lower than earlier.

Mahindra has said that it will not be instituting any price cuts for its XUV400 EV.
Mahindra’s only EV for now, was given its most significant update in January with introductory prices which are more than the earlier pricing.
While the updated XUV400 does not have any discounts, unsold MY2023 stocks are being offered with massive benefits of upwards of Rs 4 lakh, depending on inventory.

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