The news: Indian car manufacturer Tata Motors launched an affordable subcompact all-electric vehicle—a milestone for EV adoption in a country that has largely fallen behind, per Electrek.

A paradigm shift in EVs: Tata’s Tiago EV starts at 8.49 lakhs, or roughly $10,000, making it the most affordable EV we've seen.

• Now available for preorders and shipping in 2023, the Tiago EV has a 19kWh battery, the smallest on an all-electric EV. 
• The carmaker says it has 250 km (155 miles) of range, which can be topped off in 30 minutes thanks to DC fast charging.
• The Indian government and the World Bank recently revealed plans to incentivize EV adoption for environmental improvements. Thirty-five of the 50 cities with the worst air quality worldwide are in India, according to the World Air Quality Report for 2021.
• There are concerns about the safety of low-cost EVs, especially considering a Tata Motors EV caught fire in an incident in June.

How we got here: India’s EV landscape is unique in the sense that it requires foreign automakers to produce vehicles in the country. Tesla has reportedly tried to enter the Indian market and failed, which made it critical for India’s own auto industry to rise up to the demand for future EVs.

What this means for India: Tata Motors is the biggest Indian automaker and currently has around 45,000 EVs on Indian roads. Its pivot to more affordable subcompact EVs can fit the immediate needs of Indian consumers. However, the lack of an adequate charging infrastructure in the country remains the biggest barrier to adoption.

What this means for the EV industry: Tata Motors’ Tiago EV can set an example for emerging countries looking at self-sufficient EV development. It also challenges larger automakers to look at affordable, entry-level EVs.

(Source: Tata Motors)