Tata Motors to launch its 3rd electric car ‘Tiago EV’ soon; will it be under Rs 10 lakh?

Homegrown automotive manufacturer Tata Motors recently unveiled its third electric vehicle ‘Tiago EV’ in India. India’s largest electric vehicle manufacturer’s line-up consists of Nexon EV and Tigor EV. The Tiago EV will sit below the Tigor EV in the brand's electrified line-up and would be among 10 models the company has promised to launch by 2026.

The Tiago EV, which is expected to go on sale in the coming months, was first shown as a concept at a UK event and later in India’s Auto Expo 2018. Tata Motors, as per media reports, is planning to launch Tiago EV later this month and is expected to price it at around Rs 10 lakh, making it the cheapest EV by any manufacturer in the segment.

The company already offers one of the cheapest EV in the domestic market as its Tigor EV is priced at Rs 12.49 lakh. On the other hand, other EV manufacturers offer their vehicles above Rs 20 lakh.

However, the country’s largest PV maker Maruti Suzuki India, which leads in terms of small and competitively priced internal combustion engine cars, had stated it is unable to come out with an EV priced under Rs 10 lakh.

Hyundai’s Kona Electric costs start at Rs 25.30 lakh and MG ZS EV starts at Rs 22.00 Lakh. Interestingly, Tata Motors’ best-selling Nexon EV, priced starting at Rs 14.99 lakh, is also India’s best-selling EV. Maruti Suzuki plans to come out with its first EV in 2025.

Tata Motor’s new Tiago EV would also be its smallest electric car in the country, suggesting that its battery capacity, vehicle power and features would be the lowest in the company’s EV line-up. The exact price, driving range and other details would be shared at the time of its launch.

Generally, Tata offers its electric vehicles only in top variants. But if it could somehow offer the Tiago in a base electrified variant with basic features and tech offerings, the company may be able to achieve the price target of Rs 10 lakh (Ex showroom).

The ICE variant of Tata Tiago costs Rs 5.4 lakh in India. According to industry experts, the price of the electric version of a vehicle is nearly twice compared of the ICE version. Thus, the upcoming EV could be offered with trimmed features and a smaller battery pack to achieve the price target.  

Tata Motors, on the back of its Nexon EV and Tigor EV, has managed to capture 88 per cent of the electric passenger vehicle market in India. The company sold 3,845 EVs comprising the Nexon EV Prime, Nexon EV Max, and Tigor EV in August 2022, as against 4,022 units in July 2022.

The company’s retail sales stood at 37,725 units in August 2022, up from 25,930 units sold in August 2021. Its overall market share also improved to 13.75 per cent from 10.06 per cent YoY.

Tata Tiago EV’s expected powertrain and features

Although Tata Tiago EV’s specifications are still to be announced officially, itis expected to share its EV platform and powertrain with the Tigor EV.

To keep it affordable and sustainable for buyers, the company could equip the car with an entry-level motor with 41hp and 105Nm of torque. Tiago EV could also get two battery pack options: a 16.5kWh version with 165km of driving range, and a 21.5kWh iteration for 213 km range.  

In addition to this, the Tiago EV could also feature a split battery pack, similar to its sibling Tigor EV. With affordable pricing and features, Tata Motors’ Tiago EV could be a game changer for India’s mass-market EV segment as well as for the company too.