Tata Nexon EV Subsidy 2024

The Tata Nexon EV has emerged as a remarkable success story for Tata Motors, dominating the electric vehicle market in India as the highest-selling model. For the first time since its launch, Tata dealers are offering significant discounts on the Nexon EV. These discounts apply to the 2022 Model Year of the SUV, with the EV Prime receiving discounts of up to Rs 90,000 and the EV Max available with discounts of up to Rs 80,000.

tata nexon ev subsidy

Previously, buyers enjoyed substantial savings on the Tata Nexon EV, thanks to government subsidies at both the central and state levels, notably in Maharashtra, where the electric SUV became exceptionally affordable. Consequently, Maharashtra emerged as one of the leading markets for the Nexon EV. However, with subsidies now depleted, demand for the Nexon EV has dwindled. These dealer discounts represent an effort to reignite interest and draw buyers back into Tata showrooms.

tata nexon ev subsidy in gujarat

The Tata Nexon EV’s surge in popularity can be largely attributed to the availability of substantial subsidies.

In a bid to incentivize electric vehicle manufacturers, the Central government introduced the FAME II subsidy program. This initiative provides incentives to EV buyers, with electric four-wheelers eligible for a subsidy of Rs 10,000 per kWh, capped at 20 percent of the total vehicle cost. To qualify for these subsidies, vehicles must be priced below Rs 15 lakh. Additionally, various states across India offer additional incentives such as waivers for on-road tax and registration fees for electric vehicles.

The Government of Maharashtra went a step further by offering supplementary benefits beyond those provided by the FAME II subsidy. Under this policy, EV buyers were entitled to a basic incentive of Rs 5,000 per kWh of the vehicle’s battery capacity, with a maximum incentive cap of Rs 1.50 lakh. Furthermore, the policy allowed for early bird incentives for vehicle purchases made before December 31, 2021, a deadline later extended to March 31, 2022.

tata nexon ev subsidy in maharashtra / west bengal

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.

Due to subsequent price and model updates, the Nexon EV eventually exceeded the FAME II requirement of being priced under Rs 15 lakh.

According to information from our dealer sources in Maharashtra, the state government’s subsidies for the Nexon EV are no longer accessible. This occurred as the state exhausted its total allotment for incentives in November 2022. The absence of subsidies has diminished the attractiveness of the Nexon EV compared to earlier, leading to a decline in demand. Tata dealers are optimistic that the offered discounts will entice buyers to reassess the appeal of the EV SUV.

tata nexon ev subsidy in rajasthan / karnataka

Tata Motors recently implemented price cuts for the Nexon EV, reducing prices by up to Rs 50,000 for the Prime variants and up to Rs 85,000 for the Max models.

This adjustment was attributed to the government’s Production Linked Incentives (PLI) scheme, which encourages the manufacturing of electric vehicles (EVs) and hydrogen fuel cell EVs (FCEVs) within the country. Additionally, the price reduction could serve as a strategic response to the competitively priced Mahindra XUV400, which recently surpassed the milestone of 10,000 bookings. The Mahindra XUV400 stands as the only direct rival to the Nexon EV at present, prompting Tata’s strategic move to maintain competitiveness in the market.

tata nexon ev subsidy in madhya pradesh / telangana

Price cuts and discounts equal subsidy savings? 

As previously discussed, subsidies from both the central government and the Maharashtra state government enabled Nexon EV buyers to save nearly Rs 3 lakh. With the recent price reductions and discounts, the total benefit translates to a more affordable purchase by Rs 1.4 lakh for the Nexon EV Prime and up to Rs 1.65 lakh for the Nexon EV Max. Although these savings are considerably less than the subsidies offered before, they still represent a significant reduction in the overall cost. In essence, while the current savings may not match the extent of the previous subsidies, they still offer a substantial opportunity to save almost half as much.

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