Tata Nexon EV, a popular electric car in India, has recently faced a dip in sales due to the non-availability of government subsidies. To compensate for the same, Tata Motors is offering attractive discounts on its Nexon EV Prime and Max variants.
The Impact of Government Subsidies on EV Sales The availability of central and state government subsidies plays a crucial role in motivating people to buy electric vehicles. However, when subsidies were applicable to the Nexon EV, buyers could save around Rs 2-3 lakh, boosting sales, which led to a market share of over 80%.
Price Reduction and Discounts on Nexon EV
After the subsidies were discontinued, the on-road price of the Nexon EV increased, leading to a dip in sales. To counter this, Tata Motors announced attractive discounts on Nexon EV Prime and Max variants. In January 2023, Tata Motors had already slashed prices by up to Rs 85,000 due to its participation in the government’s Production Linked Incentives (PLI) scheme.
Nexon EV Max buyers can enjoy discounts of up to Rs 80,000, while the Nexon EV Prime buyers can benefit from discounts of up to Rs 90,000, which is in addition to the price cuts announced by Tata Motors.
No Government Subsidies for Nexon EV
According to the FAME II scheme, subsidy for electric cars is Rs 10,000 per kWh, capped at 20% of the EV’s overall cost. However, Nexon EV no longer fits the criteria, as it is priced above Rs 15 lakh. Also, state subsidies, such as those offered in Maharashtra, are no longer available for Nexon EV.
Competition from Rivals Tata Nexon EV’s price reduction and discounts are expected to make it more attractive to buyers, competing with other electric cars, such as Mahindra XUV400 EV. The latter has larger dimensions, more power, and faster acceleration, with bookings already crossing 10,000 units. However, the price reduction for Nexon EV is expected to make it a more value-for-money offering, as Mahindra has only registered over 15,000 bookings for the new XUV400 EV.
The price reduction and discounts on the Nexon EV are advantageous for buyers, especially when there are no government subsidies available. This move is also expected to help Tata Nexon EV compete with other electric cars in the market.