Question
Pricing of Tata Nexon EV Tata Nexon EV, a sub-4 meter hatchback is priced much higher than the competing sub-4 meter hatchback cars, e.g., the
Pricing of Tata Nexon EV
Tata Nexon EV, a sub-4 meter hatchback is priced much higher than the competing sub-4 meter hatchback cars, e.g., the petrol Nexon (priced between 7.5 lacs and 14 lacs). The running cost of the EV is 0.97/km. as compared to 6.12/ km. for the petrol car at the current fuel price. An EV customer is expected to spend 35% less on maintenance.The battery can be charged easily at home through a fitting that comes with the car. The battery life of the EV is 8 years.
Discussion question
At an average running of 15000 km/ year, what should be the customers' willingness to pay for the base model of Tata Nexon EV?
Estimated WTP for base-model of Tata Nexon EV?
Justification/ Calculation?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
