Tiago EV launch price revealed — Tata's electric hatch undercuts swift despite government subsidies

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Published: Fri 8 Mar 2024, 12:51 PM

Last updated: Fri 8 Mar 2024, 12:52 PM

Despite enjoying significant government subsidies as an electric model, the base Tiago EV variant hugely undercuts the pricing of its main rival — the popular Maruti Suzuki Swift petrol hatch. Introductory prices kick off at just ₹8.55 lakhs on-road for Tata's electric offering, making it far more affordable than anticipated.

By Peeush Srivastava

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This begs the question — how can Tata price the feature-packed Tiago EV so aggressively, even after accounting for EV incentives? There has to be more than meets the eye when it comes to containing costs.


Let's open the hood on the Tiago EV value proposition and see what magic Tata has managed to gather. A closer look at everything the electric hatch offers shows how it gives conventional rivals sleepless nights while benefiting customer wallets.

Tiago EV vs Swift — An Overview


Here's a quick snapshot of how the two models compare:

Tiago EV

  • Price - ₹8.55 lakhs onwards
  • Electric motor with 60bhp max power
  • Two battery options - 19.2 kWh & 24 kWh
  • 312 km max range (ARAI)
  • Fast charging support

Swift

Swift Price - ₹6.47 lakhs onwards

  • Petrol engine options - 89bhp
  • Fuel efficiency of 23.2 kmpl (ARAI)
  • No electrification

While the Swift clearly has an edge with its lower starting price, that advantage starts to dwindle as we look at higher variants. And as an electric model, the Tiago EV is significantly cheaper to run owing to substantially lower energy costs compared to rising petrol prices. Let's examine things in detail:

Tiago EV Launch Prices Revealed

Here is the variant-wise pricing for the new Tata Tiago EV:

  • XE - ₹8.55 lakhs
  • XT - ₹9.57 lakhs
  • XT Tech Lux - ₹10.60 lakhs
  • XZ+ - ₹11.62 lakhs
  • XZ+ Tech Lux - ₹12.14 lakhs
  • XZ+ Tech Lux Fast Charge - ₹12.65 lakhs

As listed, the introductory batch of the Tiago EV is offered in such variants with a choice of two battery packs — 19.2 kWh and 24 kWh.

How Does Pricing Compare to Rival Swift?

The entry-level XE variant of the Tiago EV significantly undercuts even the base Swift LXi model's on-road pricing in Delhi. The comparable figures are:

  • ➔Tiago EV XE - ₹8.55 lakhs
  • Swift LXi - ₹6.47 lakhs

However, as we look at higher variants, this gap starts to reduce. The Tiago EV XZ+ Tech Lux Fast Charge tops out at ₹12.65 lakhs on-road in Delhi, while the Swift ZXi+ AMT is priced at ₹9.79 lakhs on-road in the capital.

  • Tiago EV XZ+ Tech Lux Fast Charge: ₹12.65 lakhs
  • Swift ZXi+ AMT: ₹9.79 lakhs

So in top-end models, the Tiago EV enjoys merely a ₹2 to 3 lakhs price advantage over conventional Swift rival. However, this gap will surely provide enough incentive for many buyers to switch to electric.

Why Is the Tiago EV Priced Lower than Expected?

Sceptics may wonder how Tata is able to price the feature-loaded and electrified Tiago EV as low as its petrol-powered models. There are a few factors at play here:

Government Subsidies

Under the FAME II policy, electric cars in India enjoy significant subsidies. Based on battery capacity, electric vehicles priced under Rs. 15 lakhs qualify for sizeable incentives. For the entry-level Tiago EV models, this subsidy amount works out to over Rs 1 lakh per vehicle. So right away, a chunk of the cost stands discounted thanks to the government promotion.

Own Manufactured Battery Pack

Tata has also invested significantly in the in-house development and production of battery cells and packs at subsidised rates. This has helped lower production costs considerably. Leveraging group synergy with Tata Chemicals improves access to discounted raw materials.

Higher Production Volumes

As the first mass-market electric hatchback, Tata Motor expects robust demand, allowing manufacturing efficiencies and economies of scale benefits that facilitate competitive pricing.

Lower Taxes

Additionally, government taxes on EVs like the Tiago EV are significantly lower compared to conventionally powered cars. Zero road tax leads to major savings passed on to buyers.

Tiago EV vs Swift: Detailed Comparison

Now that prices have been revealed, it's also important to see how these two popular hatchbacks compare beyond pricing:

Dimensions

While the Tiago platform has been electrified, overall dimensions are similar to its petrol sibling which is under 4 meters in length. The Swift is under 4 meters as well, making both models quite nimble in city conditions. Legroom or boot space is reasonably at par.

Performance

The Tiago EV promises to deliver improved performance compared to its petrol versions while delivering 4 to 5 times better energy efficiency.

Charging Convenience

For home charging, the Tiago EV will come bundled with a portable charger, while Tata offers optional instalments of wall-mounted charging stations. The largest 24 kWh battery pack promises full charges in under 90 minutes through fast charging.

Features & Safety

The Tiago EV carries forward the top-spec features from Tata's iCNG range, including an audio system, automatic climate control, and an advanced infotainment panel with smartphone connectivity. Safety is also taken care of with dual airbags, rear sensors, and more.

Should You Pick the Tiago EV Over Swift?

For buyers that cover modest daily distances, the Tiago EV makes a more viable and sustainable choice over petrol models like the Swift. Yes, the entry prices are higher despite subsidies, but down the line, the savings from lower energy bills make this a wiser investment. Add the benefits of better performance and lower maintenance –picking Tata's new electric hatch is certainly a tempting proposition for city commuters aiming to go green.

— Peeush Srivastava is an international media specialist with 25+ years of experience with Indian and international media platforms for maintaining diplomatic liaison and building strong and long-term relations with international organisations/corporate/govt bodies/business chambers.


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