As India accelerates its shift toward cleaner mobility, the government continues to provide attractive subsidies on electric vehicles (EVs), including popular models like the Tata Nexon EV. If you’re planning to buy a Nexon EV in 2025, understanding the subsidies and incentives available can significantly impact your buying decision.
1. Central Government Subsidy (FAME II Scheme)
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme is the main nationwide EV incentive program in India. Under this:
- Electric cars like the Tata Nexon EV are eligible for a subsidy of ₹10,000 per kWh of battery capacity.
- The maximum subsidy is capped at ₹1.5 lakh per vehicle.
- Only vehicles used for commercial purposes (such as fleet operations or taxis) are eligible under FAME II.
Note: As of May 2025, the FAME II scheme is being revised, and some reports suggest it may soon be replaced by a more focused incentive program. Check with the dealership for real-time updates.
2. State Government Subsidies
Several Indian states offer additional subsidies on electric vehicles. These vary by region and are often limited to a fixed number of early applicants or registered buyers. Here’s a snapshot of some key states:
Maharashtra
- Up to ₹2.5 lakh in total subsidy (including early-bird incentives).
- 100% exemption on road tax and registration charges.
Delhi
- ₹10,000 per kWh (up to ₹1.5 lakh).
- 100% road tax and registration fee waiver.
- Additional scrappage incentive if you trade in your old car.
Gujarat
- ₹10,000 per kWh up to ₹1.5 lakh.
- Exemption from registration fees.
Karnataka, Tamil Nadu, Telangana
- Road tax exemption and incentives depending on local policy.
- No direct subsidies in 2025, but supportive infrastructure policies.
3. Other Benefits
- Income Tax Incentive: Under Section 80EEB, EV buyers can claim up to ₹1.5 lakh in tax deduction on the interest paid on loans for EVs.
- Reduced GST: EVs, including the Nexon EV, are taxed at only 5% GST (compared to 28% for petrol/diesel cars).
4. On-Road Price After Subsidy
The Tata Nexon EV comes in multiple variants, with prices ranging between ₹14.5 lakh and ₹19 lakh (ex-showroom). After factoring in subsidies, the effective on-road price may be reduced by ₹1.5 lakh to ₹4 lakh, depending on your state and eligibility.
Conclusion
The Tata Nexon EV remains one of the best-selling electric cars in India, and with both central and state subsidies, it becomes even more attractive. Buyers are advised to check the latest updates from the official Tata Motors website or local RTO/dealerships, as EV policies may vary or change over time.