Tata Motors intends to introduce a new budget-friendly electric vehicle, targeting the Rs 8–11 lakh market segment. The launch of the Altroz EV has been postponed as the company anticipates market stability. With the Tiago.ev and Punch.ev already part of its offerings, Tata is at the forefront of India’s electric vehicle sector, navigating changing dynamics and reductions in the prices of electric vehicle components.
Tata Motors is set to introduce another budget-friendly electric vehicle model, while its rivals concentrate on the mid and premium markets.
The company is awaiting market stabilization before launching the Altroz EV, which has been under development for several years.
Vivek Srivatsa, the chief commercial officer of Tata Passenger Electric Mobility, stated, “We have a few products aimed at the Rs 8-11-lakh price range. We intend for the Altroz (EV) to fulfill a specific function. There are two products that were meant to include the Altroz (EV). We will bide our time until the Altroz can find its appropriate place in the portfolio and the EV sector stabilizes.”
Tata Motors’ electric vehicle product lineup was designed in 2020-21, ensuring clear differentiation among models and the markets they address. Since then, the EV market has experienced considerable changes, particularly with the decline in battery and component prices.
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“Price reductions have occurred much more rapidly than expected in the EV sector. Therefore, we prefer not to hasten our entry and risk creating further confusion within the category,” Srivatsa remarked.
With five electric vehicles, Tata Motors boasts the largest collection of passenger battery electric vehicles in India. The pricing begins at Rs 7.99 lakh for the Tiago.ev and reaches up to Rs 17.49 lakh for the Curvv.ev. The company’s second offering under Rs 11 lakh is the Punch.ev.
On Thursday, an updated version of the Altroz premium hatchback, available with petrol, diesel, and CNG engines, was launched, with prices starting at Rs 6.89 lakh (petrol model, ex-showroom). This model will compete with the segment leaders, Maruti Suzuki Baleno and Hyundai Elite i20. This marks the first significant update for the model since its launch in early 2020.
The premium hatchback category produces a monthly output exceeding 30,000 units. Following a peak of 25% in 2023, Tata Motors’ market share in this category has decreased to 12%. The company is optimistic about increasing its share to 30% with the recent launch.
“The hatchback category is expected to stabilize at approximately 20% of the total industry volume, and within that, the premium hatchback segment is projected to expand to nearly 50%. There has been no volume growth. In the past couple of years, this segment has experienced a decline. Nevertheless, it is anticipated that the segment will stabilize,” Srivatsa stated.