Delhi government suspends subsidies on Tata Nexon EV

The Delhi government has delisted the Tata Nexon EV from its list of cars that are eligible for its subsidy on electric vehicles. The Delhi government provides a rebate of Rs 10,000 per kWh of battery capacity up to a maximum of Rs 1.5 lakh, the Nexon EV in its XZ+ variant was eligible for this benefit.

This move comes after a complainant claimed that his Nexon EV has never returned a range of over 200 km despite following dealer-intimated advice on the use of EVs and the ARAI-certified range for the Nexon EV being 312 km. Tata Motors responded to this allegation by saying that the ARAI figure is a proven figure achieved under standards set by law and that the Nexon EV also meets the minimum 140 km range needed for four-wheelers to meet FAME-II subsidy guidelines. The company went on to say that the range is affected by various factors like the use of the AC, driving style, drive modes, traffic conditions and other real-world factors. The company noted that owners who have become familiar with driving the Nexon EV have seen the range grow by up to 10 per cent.

The government has dismissed Tata Motors argument, with the reasoning that the sole ARAI test result cannot displace the claim from the owner who has consistently seen a 200 km range in real-world conditions. The government also said that since ARAI does not test every unit of a car, the tested range cannot be seen as a true figure in this case with the possibility of the car or battery being faulty. The government further noted that Tata Motors has made no effort to independently verify the complaint or taken steps to have the EV's range verified independently by a third party. The government also noted that this claim was not an isolated incident with more complaints being noted of the Nexon EVs reduced range.

The Delhi government has constituted a panel to reach a final decision on the matter but has suspended the benefits on the Nexon EV with immediate effect. The thought being that this seemingly false range claim seems to undermine the objectives of the EV policy and can also lead the general public to lose faith in OEM stated range figures, an important factor in the car-buying decision.

The Tata Nexon EV is priced at Rs 13.99 lakh for the base XM trim level. The XZ and top-spec XZ Lux variants cost Rs 14.99 lakh and Rs 15.99 lakh respectively (All prices are ex-showroom pan India). Tata Motors has now introduced a subscription plan for the Tata Nexon EV. Consumers will not need to buy the electric SUV outright, instead, an all-inclusive monthly rental starting from Rs 41,900 can be paid. Know more about the Nexon EV's subscription schemes here.

Read our review of the Tata Nexon EV here

Watch the video review of the Tata Nexon EV below