On Tuesday, Tata Motors reduced the prices of its electric vehicles as part of their ‘Festival of Cars’ promotion, which will continue until October 31.

The price of the Nexon.ev has been reduced by up to Rs 3 lakh, while the Punch.ev now has discounts of up to Rs 1.20 lakh. The Tiago’s price has been cut by Rs 40,000. On top of these discounts, Tata.ev is offering six months of free charging at more than 5,500 Tata Power charging stations across India.

After the price cuts, the Tata Tiago EV will now start at Rs 7.99 lakh, while the Punch EV will be priced at Rs 9.99 lakh. The Nexon EV will start at Rs 12.49 lakh, according to a statement from Tata Motors.

The company said these price cuts aim to make electric vehicles more common and encourage more people to switch to them.

Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility Ltd., said, “Our singular purpose at TATA.ev is to mainstream EVs, by breaking barriers and making EVs more accessible to regular car buyers. With these special, limited period prices, we are breaking the high acquisition cost barrier for EVs, and bringing EV prices closer to similar petrol and/or diesel-powered vehicles.”

Tata's 'Festival of Cars' campaign

The company kicked off its 'Festival of Cars' campaign on Monday, unveiling lower prices on its popular cars and SUVs. Tata Motors stated that these festive offers will be available for a limited time and apply to all petrol, diesel, and CNG models.

The price cut comes as dealerships are dealing with a large buildup of unsold inventory. Car sales dropped by 4.5 percent in August, marking the third decline this financial year, which started in April. India's top three carmakers—Maruti Suzuki, Hyundai, and Tata Motors—experienced declines in dealer sales to customers, with drops of 8.5 percent, 12.9 percent, and 2.7 percent, respectively.

In August, the unsold car inventory in the world's third-largest auto market reached a record high of 70-75 days, with a total value of 778 billion rupees ($9.27 billion).