Tata Nexon EV receives substantial Rs.3.15 lakh discount, Click to read more

Tata Motors has unveiled a noteworthy reduction in the price of its Nexon EV, introducing a remarkable discount of ₹3.15 lakh and bringing its starting price down to ₹14.54 lakh (ex-showroom). This move is part of Tata Motors’ strategy to enhance the accessibility of electric vehicles (EVs) in its lineup.

The discounts extend beyond the Nexon EV, encompassing Tata Motors’ broader EV range, excluding the Punch EV model. This initiative aligns with Tata’s aim to strengthen its position in the electric car segment, evident from a substantial increase in sales during February 2024, with nearly 7,000 electric cars sold, marking a 30.18% surge compared to the same period last year.

However, a closer examination of the significant discount on the Nexon EV reveals a nuanced scenario. The ₹3.15 lakh discount is not a straightforward price reduction but comprises various incentives provided by the car manufacturer, government schemes, and potential state-specific subsidies. Here’s a detailed breakdown of the discount structure:

1. FAME-II Subsidy: The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme by the central government contributes a substantial subsidy to the purchase of electric vehicles, encompassing the Nexon EV.

2. Manufacturer Discount: Tata Motors extends an additional discount on the Nexon EV, complementing the FAME-II subsidy to further reduce the customer’s cost.

3. State Subsidies: Many state governments across India offer supplementary subsidies to stimulate EV adoption. The overall ₹3.15 lakh discount might also encompass state-specific subsidies, contingent on the purchase location.

It is crucial to recognize that the state-specific subsidy component can vary based on the state of purchase, impacting the final on-road price. Prospective buyers are advised to consult local Tata Motors dealerships to ascertain the exact on-road price, accounting for all relevant subsidies.

This offer is likely associated with Tata Motors clearing its existing inventory of the Nexon EV ahead of the anticipated launch of an updated model later this year. The forthcoming Nexon EV is expected to incorporate enhanced features and potentially boast an extended driving range.

Similar discount schemes have been introduced for other Tata Motors electric vehicles, including the Tiago EV and the Tigor EV. The Tiago EV witnesses a price reduction of approximately ₹2 lakh, while the Tigor EV receives a slightly lower discount of around ₹1.8 lakh. These discounts follow a comparable structure, combining FAME-II subsidy, manufacturer discount, and potentially state-specific subsidies.

However, this pricing adjustment is a positive development for the Indian EV market, contributing to increased affordability and potentially accelerating the adoption of electric vehicles nationwide.