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

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.

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

Swift

Swift Price - ₹6.47 lakhs onwards

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:

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:

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.

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

— 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.