In a significant stride toward enhancing the affordability and accessibility of electric vehicles (EVs), Tata Motors has announced a substantial discount of ₹3.15 lakh on its Nexon EV, bringing its starting price down to ₹14.54 lakh (ex-showroom). This pricing adjustment is part of Tata Motors’ broader strategy to strengthen its position in the electric car segment, evident from a notable surge in sales during February 2024.
The substantial discount, however, is not a simple reduction in the Nexon EV’s price tag but involves a multi-faceted approach that combines incentives from the car manufacturer, government schemes, and potential state-specific subsidies. A closer look at the discount structure reveals the following key components:
- FAME-II Subsidy: The central government’s Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme contribute a significant subsidy to the purchase of electric vehicles, including the Nexon EV.
- Manufacturer Discount: Tata Motors extends an additional discount, complementing the FAME-II subsidy to further reduce the overall cost for customers.
- State Subsidies: Various state governments across India offer supplementary subsidies to incentivize EV adoption. The ₹3.15 lakh discount may include state-specific subsidies, contingent on the purchase location.
The state-specific subsidy component is pivotal, as it 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, considering all relevant subsidies.
This pricing adjustment aligns with Tata Motors’ strategy to clear existing inventory ahead of the anticipated launch of an updated Nexon EV model later this year. The upcoming model is expected to feature enhanced specifications and potentially 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.
This pricing strategy not only benefits consumers but also contributes to the positive momentum in the Indian EV market, making electric vehicles more affordable and potentially accelerating their adoption nationwide.
