Tata Nexon EV is no longer eligible for subsidies, the on-road price has risen. As a result, sales have decreased. Tata Motors is now offering attractive discounts to increase sales. Buyers of the Nexon EV Prime can get discounts of up to Rs 90,000 and people who purchase the EV Max will benefit from a discount of up to Rs 80,000.
These price cuts are in addition to those announced previously by Tata Motors. Nexon EV Prime prices were reduced by up to Rs 50,000 in January 2023. The price of the EV Max has been reduced to Rs 85,000. The price cuts were attributed to the company’s gains from participation in the government’s Production Linked Incentives (PLI) scheme.
With the discount and price reductions, the total cost benefit of Nexon EV Prime is around Rs 1.4 lakh. In the case of the Nexon EV Max, buyers can save up to Rs 1.65 lakh.
This represents roughly half of the savings available through FAME II and state subsidies. Reduced pricing for Nexon EV can also help combat the threat posed by rival XUV400. The latter is larger in size, has more power and torque, and accelerates faster. Furthermore, XUV400 reservations have already surpassed 10,000 units. Nexon EV could become a more affordable option with lower pricing. Mahindra has received over 15,000 reservations for the new XUV400 EV.
State subsidies for Nexon EV are no longer available in places such as Maharashtra. Previously, the Maharashtra government provided a Rs 5,000 per kWh subsidy for EVs. The maximum limit was set at Rs 1.50 lakh. Early bird discounts were also available to EV buyers if they purchased the vehicle before December 31, 2021. This period was later extended until March 31, 2022. State subsidy allotments have already been depleted, so Nexon buyers will not be eligible for this benefit.
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