EV-ICE Price Parity Almost Here: Top Tata Official
The long-awaited moment when an electric car costs exactly the same as its petrol or diesel counterpart is rapidly approaching. According to Anand Kulkarni, Chief Products Officer and Head of HV Programs and Customer Service, Tata Passenger Electric Mobility Ltd, the cost gap between electric vehicles and traditional internal combustion engine cars is narrowing significantly faster than previously anticipated. This shift is primarily driven by plummeting global battery prices and aggressive cost optimization across the supply chain, bringing genuine price parity within reach over the next few years.
Historically, the upfront sticker price of an electric vehicle has been its single biggest deterrent, often commanding a 20 to 40 percent premium over an equivalent petrol model. For a price-sensitive market, this massive initial acquisition cost has heavily restricted mainstream EV adoption. However, Mr. Kulkarni's recent statements indicate that the underlying economics of building an electric car are undergoing a fundamental transformation.
The primary factor driving prices down is the cost of the battery pack, which traditionally accounts for nearly 40 percent of an electric vehicle's total manufacturing cost. As global battery prices continue to soften, automakers are immediately passing those savings down to the final product. Tata Motors has already begun reflecting these reduced input costs in its showroom prices.
Beyond cheaper batteries, the carmaker is achieving massive savings through deeper localization and vertical integration. Instead of importing expensive pre-assembled battery packs, the company is actively localizing cell manufacturing and assembly. The company has opted for a 6-in-1 electric motor for the new Punch.EV, which greatly reduces cost of high voltage components, complexity and weight.
By collaborating heavily with other entities within the Tata Group, such as Tata AutoComp, the automaker is streamlining its supply chain and drastically reducing logistical overheads. This integrated approach allows the brand to build EVs far more efficiently than it could just two years ago.
Another crucial element in reaching price parity is the shift away from adapted ICE platforms. Early electric vehicles in India were essentially petrol cars retrofitted with battery packs, a process that involved heavy engineering compromises and higher production costs. Tata Motors is now rolling out vehicles built on dedicated, native EV architectures, such as its Gen 2 skateboard platform seen on the new Punch EV.
These ground-up electric platforms are cheaper to manufacture at scale. They allow for optimized battery placement, fewer moving parts, and simpler assembly processes. This improved manufacturing efficiency directly translates to a lower final price tag for the consumer. The company explicitly targets achieving full price parity by 2030 across its broader portfolio, but the gap in certain segments is already closing rapidly.
While domestic cost reduction is a priority, Tata Motors is also benchmarking its pricing against highly aggressive Chinese manufacturers. Chinese automakers currently enjoy a massive cost advantage due to their deeply established, government-backed electric vehicle ecosystem. Kulkarni acknowledged this competitive threat, especially as Tata prepares to expand its EV portfolio globally.
However, he expressed confidence that Tata Motors is on track to neutralize this advantage. Kulkarni stated that within the next 12 to 18 months, the company expects to achieve cost parity with Chinese manufacturers from a landed cost perspective.
This timeline assumes the inclusion of standard logistics and roughly 15 percent import duties that foreign players face. By driving down local production costs, Tata Motors is actively ensuring that when electric cars finally match petrol prices, the domestic industry remains completely competitive against a potential influx of cheap foreign imports.
Via FinancialExpress