Tata Motors' new $10,000 electric vehicle could be launched before Tesla enters India

An Indian car company could market a $10,000 electric vehicle before several major electric vehicle companies launch in the country.

What Happened: Tata Motors Limited ADR TTM showed off its new electric vehicle with a starting price of around $10,000.

The company s new lower-end electric vehicle model could help fight off competition from the likes of Tesla Inc TSLA before they hit the country.

The new car is called the Tiago.ev and comes with a range of battery sizes, charging options and models that range in price. The low-end model has a price of 8.49 Lakh, which is around $10,000.

Electrek reported on the new vehicle, and said the battery pack of 19 kWh was among the smallest ever seen for an electric vehicle and on par with batteries in electric motorcycles and electric jet skis.

Tata Motors said the new vehicle gets 250 km, or around 155 miles, of range on a single charge.

The battery pack comes with a range of 315 km, or 194 miles, of range, according to the company.

Tata Motors is one of the largest Indian automotive companies and is a leader in the field of electric vehicles, with around 45,000 vehicles on the road in the country.

Deliveries of Tiago.ev are expected to start in January 2023. Tata Motors is taking reservations for the vehicle.

Why is it important to have a strong automotive presence in India without a factory in the country?

A high import tax has kept Tesla from launching the vehicle in India. Plans for the Indian market have been put on hold.

Elon Musk, CEO of Tesla, said back in 2020 that Tesla would enter the Indian market next year in reference to 2021. Musk said that the country's government and costs led to Tesla focusing on other regions for expansion.

Fisker Inc FSR, which has electric vehicles coming in the future, has made India one of its first countries to focus on. The Fisker Ocean SUV is going to be sold in India starting in July 2023. Fisker will make cars in India in a few years.

The Indian market can be a lucrative target for electric vehicles but comes with lower price points needed for consumers and mass adoption.

Tata Motors recently acquired a manufacturing facility in India from Ford Motor Company F, which could increase manufacturing capabilities for Tata Motors moving forward.

Domestic vehicle sales for Tata Motors were 78,978 units in July, up 52% year-over-year. In the month of July, the company reported 4,022 electric vehicles, an increase of 566% year-over-year.

TTM Price Action: Tata motors shares are up 1.81% to $24.81 on Wednesday versus a 52 week range of $22.01 to $35.38.