Amid talks of Elon Musk’s Tesla bringing a low-cost electric vehicle (EV) to the Indian market soon, the country’s top automobile manufacturer, Tata Motors, has decided to cut the prices of its electric vehicles.

What Happened: Tata Motors’s EV unit on Tuesday said it has reduced prices of its cars by up to ₹1.2 lakhs in the biggest price cut by an electric carmaker in the country.

Tata Passenger Electric Mobility will now sell its top-selling Nexon EV for ₹14.5 lakhs. Prices for the Nexon EV previously began at ₹14.7 lakhs, according to Tata’s website. The company also cut the price of its small EV car Tiago by ₹70,000.

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Vivek Srivatsa, chief commercial officer at the Tata Group company said in a press release that the company has chosen to proactively pass on the benefits of softer battery cell prices in the recent past and a likely further fall in the foreseeable future directly to customers.

Recently, competitor Hyundai Motor was reportedly considering an IPO for its Indian subsidiary, Hyundai Motor India, aiming to raise a minimum of $3 billion (₹24,920 crore) as it looks to get a leg up on Tesla’s likely entry into the Indian EV market.

Another carmaker Mahindra & Mahindra has also called for equal opportunities between local and international players amid talks of the US carmaker’s arrival in the country. 

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