In a significant move, Tata Motors, India's leading electric vehicle (EV) maker, slashed prices of its popular Nexon.ev and Tiago.ev models by up to 120,000 rupees ($1,450). This marks the first price cut by an Indian EV company, aiming to boost sales and make EVs more accessible.

High upfront costs and range anxiety remain major hurdles for widespread EV adoption in India. However, Tata, citing reduced battery cell prices, is proactively passing on the benefits to customers. This strategic move could spark a price war in the Indian EV market, potentially motivating rivals to follow suit.

The price cut comes amidst slowing global EV sales, with giants like Tesla leading the charge to maintain market share. Analysts believe Tata's move could trigger aggressive pricing from competitors, along with exciting new EV launches.

Tata, aiming to capture 25% of its total car sales from EVs by 2025, plans to launch 10 new electric cars within the next few years. Their EV-only dealerships, launched in September 2023, are another step towards this ambition.

While the news was initially met with a slight dip in Tata Motors' share price, the long-term implications could be positive. If the price cut encourages greater EV adoption in India, it could solidify Tata's leading position and accelerate the country's transition to electric mobility.