In a bid to stimulate sluggish sales, Tata Motors, the dominant player in India’s electric car market, has announced a hike in the discount on its Nexon EV range by up to ₹60,000.

What Happened: Tata Motors informed its dealers about the increased discount, which comes into effect just months after a price reduction of up to ₹1.2 lakhs on the Nexon EV range, Economic Times reported. This move follows the launch of the Curvv EV, an e-SUV coupe, and is seen as an attempt to attract buyers ahead of the festive season in a weak market.

Electric vehicle sales for the month of July came in at 5,027 units, down 21% from the 6,329 vehicles sold in July 2023. In June Tata Motors EV sales were down 34% year-on-year to 4,657 units.

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The company’s spokesperson revealed that these additional benefits are being offered locally by channel partners for a limited period until August 31. Tata Motors, which controls 68% of the electric passenger vehicle market in India, has seen a contraction in sales from the beginning of the year. The sales of its flagship model, Nexon EV, have been under pressure, with monthly average sales dropping to 950 units in the current fiscal from 1,700 units in 2023-24.

With the launch of the competitively priced Curvv EV, the already weak uptake of the Nexon EV range is expected to be further impacted due to price overlaps between the variants of the two models.

The launch of the Curvv EV, projected as a game-changer in the EV segment, was highlighted as a significant move by several analysts, who retained their bullish outlook on the auto giant.

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