The Tata Nexon EV has been a highly successful model for Tata Motors and is the largest selling EV in India. This is the first time since launch that Tata dealers are offering substantial discounts on the Nexon EV. These discounts are available on the 2022 Model Year of the SUV, with the EV Prime getting discounts of up to Rs 90,000 and the EV Max available with discounts of up to Rs 80,000.
Earlier, buyers were able to save big on the Tata Nexon EV thanks to the Centre and state subsidies, especially in Maharashtra, where the electric SUV was the most affordable. This made the state one of the biggest markets for the Nexon EV. However, with subsidies now exhausted, demand for the Nexon EV has fallen, and these dealer discounts are an attempt to attract buyers back into Tata showrooms.
Tata Nexon EV’s popularity was driven by generous subsidies
To encourage EV manufacturers, the Central government came up with the FAME II subsidy where incentives are provided to EV buyers. For electric four-wheelers, the incentive stands at Rs 10,000/kWh with a cap at 20 percent of the total cost of the vehicle. The scheme requires vehicles to be priced under Rs 15 lakh to qualify for the subsidies. In addition to the FAME II subsidy, several states in India also offer a waiver for on-road tax and registration fee for electric vehicles.
The Government of Maharashtra offered benefits over and above the ones available under the FAME II subsidy. The policy offered a basic incentive of Rs 5,000 per kWh of the vehicle battery capacity, with maximum incentive capped at Rs 1.50 lakh. Additionally, the policy allowed EV buyers to avail early bird incentives on purchase of a vehicle before December 31, 2021, which was later extended to March 31, 2022.
The FAME II subsidy and Maharashtra goverment's incentives meant that buyers could save Rs 2 lakh-3 lakh on a new Nexon EV, thereby, explaining its popularity.
Tata Nexon EV no longer applicable for Centre and state subsidies
The Nexon EV, with subsequent price and model updates, eventually did not meet the FAME II requirement of being priced under Rs 15 lakh.
Our dealer sources in Maharashtra tell us that the state government subsidies on the Nexon EV are also no longer available as the state crossed the total number of allotments for the incentives in November 2022. Lack of any subsidies has made the Nexon EV a less attractive proposition than before, resulting in a fall in demand. Tata dealers hope the discounts will lure buyers to reconsider the EV SUV.
Tata recently slashed the prices of the Nexon EV
Tata Motors also recently reduced the prices for the Nexon EV by up to Rs 50,000 for the Prime vairants and up to Rs 85,000 for the Max. Tata said the prices were reduced on account of the government's Production Linked Incentives (PLI) scheme that incentivises EV and hydrogen fuel cell EV (FCEV) manufacturing in the country. The price reduction could also be a strategic move to counter the competitively priced Mahindra XUV400 – that recently crossed the 10,000 bookings milestone – which is the Nexon EV’s only direct rival at the moment.
Price cuts and discounts equal subsidy savings?
As mentioned earlier, the Centre and Maharashtra state subsidies helped Nexon EV buyers save almost Rs 3 lakh. The total benefit with the new price cuts and discounts mean that a Nexon EV Prime is now more affordable by Rs 1.4 lakh. That figure goes up to Rs 1.65 lakh for the Nexon EV Max. So, while the savings are nowhere close to the subsidies, you can still save half as much.
Disclaimer: Discounts vary from city to city and are subject to the availability of stock. Please check with your local dealer for the exact discount figures.