As part of the ‘Festival of Cars’ promotion, the automaker has reduced prices on its popular cars and SUVs by up to INR 2.05 lakh.
The price cut comes amid a significant inventory buildup at dealerships. Car sales by dealers fell by 4.5% in August, marking the third decline in the current financial year, which began in April.
Prices for the Nexon EV have been reduced by up to INR 3 lakh, while the Punch EV is available with discounts of up to INR 1.20 lakh. The Tiago's price has been cut by INR 40,000. Additionally, Tata EV is offering six months of free charging at over 5,500 Tata Power charging points across India.
Global brokerage firm UBS reported a sharp increase in discounts for the Range Rover Sport. JLR has performed well in recent years, with strong ASPs and margins driven by high demand for its latest models. However, the prolonged success of these models is beginning to moderate, and the company’s order book has fallen below pre-COVID levels.
UBS also expects discounts to continue rising, although near-term deliveries may be impacted by disruptions caused by flooding at an aluminum supplier.
In August, unsold car inventory in the world's third-largest auto market surged to a record 70-75 days, valued at 778 billion rupees ($9.27 billion).
“The incentives for Range Rover-JLR's apex model- start rising soon from near-zero levels. Rising discounts, moderating growth, and a lack of any new ICE/hybrid launch could result in significantly weaker financials for FY26,” said UBS in its note.
Meanwhile, The Competition Commission of India (CCI) on Tuesday also announced that it had approved the merger of Tata Motor Finance with Tata Capital.
The merger will see Tata Capital issue its equity shares to the shareholders of Tata Motor Finance resulting in Tata Motors effectively holding a 4.7% stake in the merged entity.
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