Tata Motors, which currently dominates the electric vehicle segment of the Indian passenger car market, has reported a decrease in manufacturing costs for electric vehicles, attributed to the reduction in battery prices. This trend is effectively bridging the cost gap with traditional internal combustion engine vehicles, which have historically been less expensive to produce. Shailesh Chandra, the Managing Director of Tata Motors' passenger vehicle and electric mobility division, stated at the Bharat Mobility Global Expo 2025 that the prices of electric cars are approaching those of internal combustion engine vehicles.

In recent years, various automakers, including Tata Motors, Hyundai, JSW MG Motor, Mercedes-Benz, Audi, and BMW, have introduced a diverse array of electric vehicles in the Indian market. At the Auto Expo 2025, Tata Motors showcased near-production models of the Sierra EV and Harrier EV. Hyundai's Creta EV emerged as a significant highlight of the expo, while Maruti Suzuki presented the e Vitara, marking its inaugural entry into the electric vehicle sector. Notably, the largest car manufacturer in India has expressed its ambition to become the leading electric car producer in the country by 2026, posing a challenge to Tata Motors' current leadership.

Bloomberg has indicated that Tata Motors is prepared to engage in a price competition if necessary within India's emerging yet swiftly expanding electric vehicle (EV) market. In this context, Chandra remarked that the decline in global battery prices has equalized the cost framework for all automotive manufacturers. He questioned, "Why should the market not double or even triple?" in reference to the anticipated growth in EV sales by 2025.

Although electric vehicle sales in India are experiencing consistent growth, several challenges remain in the path of broader EV adoption. The two primary obstacles have been pricing and the availability of charging infrastructure. With the introduction of new cost structures, electric vehicles can be offered at more competitive prices, while manufacturers are also beginning to invest in charging facilities. Chandra highlighted this as a favorable trend that is likely to enhance market expansion.

Read Also: Skoda Vision 7S Concept Unveiled at Auto Expo 2025: Launch Set for India in 2027