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Indian automaker Tata Motors's electric vehicle (EV) unit on Tuesday said it has reduced prices of its cars by up to 120,000 rupees (~$1,450) in what is the first instance of a price cut by an electric carmaker in the country.

Tata Passenger Electric Mobility will now sell its top-selling Nexon.ev for 1.45 million rupees. Prices for the Nexon.ev previously began at 1.47 million rupees, according to Tata's website.

The company also cut the price of its electric small car Tiago by 70,000 rupees.

"With battery cell prices having softened in the recent past and considering their potential reduction in the foreseeable future, we have chosen to proactively pass on the resulting benefits directly to customers," Vivek Srivatsa, Chief Commercial Officer at the TPG-backed company said in a press release.

($1 = 83.0140 Indian rupees)