EV Discounts Soar Amid Stock Surplus In India

The Indian automotive market was fairly less impacted from the global EV slowdown but a recent newspaper report highlights that automakers in India are offering huge discounts on EVs. The report cites rising stock surplus and regulatory norms as the reason behind automakers offering huge discounts on EVs in India. According to the report the EV market in India is currently offering significant price reductions on both passenger vehicles and two-wheelers. Factors such as stock surpluses, lower component costs and compliance with Corporate Average Fuel Economy (CAFE) norms have contributed to these discounts.

The report highlights that in the electric two-wheeler segment, discounts range from 10 to 20 percent, depending on the model/variant and the discounts on electric cars are also quite tempting running into several lakhs.

Hero MotoCorp's Vida V1 Pro and Vida V1 Plus are offering price reductions of up to Rs 25,000 and up to Rs 10,000, respectively. Online platforms like Flipkart are providing discounts ranging from up to Rs 2,500 to Rs 5,000 on some electric two-wheelers. The Ather 450 is available with a discount ranging from up to Rs 5,000 to Rs 7,000, while the Ather Rizta offers a price reduction ranging from up to Rs 3,000 to Rs 6,700. Discounts are being applied across most electric two-wheeler models.

The report states that original equipment manufacturers (OEMs) are covering most of the discount costs, with dealerships contributing as well. Exchange bonuses of up to Rs 15,000 and trade discounts between Rs 3,000 and Rs 5,000 are also available in some cases.

The report also cites industry sources that state that the discounts are partly due to leftover festive season offers and overproduction during that period. This situation is being utilized to manage inventory levels and meet regulatory requirements.

Another important fact to take into consideration here is that we are in December and automakers generally offer huge discounts on vehicles this month every year to maximise their sales performance for the calendar year.

The Mahindra XUV400 is an electric SUV based on the now discontinued XUV300 SUV and this month the company is offering savings of up to Rs 3 lakh on the purchase of this electric SUV.

The Tata Nexon.ev is among the best selling electric cars in India. While there are no official details available on the discount offers available on the Nexon.ev but multiple media outlets have reported that this EV is available with savings of up to Rs 3 lakh on the pre-facelifted version of this EV. The availability of this is subject to stock and dealerships.

The Hyundai Ioniq 5 sports a contemporary retro design and is arguably the best looking electric car in India. This month Hyundai is offering savings of up to Rs 2 lakh on purchase of this premium electric car.

The Tata Tiago.ev is the entry level EV from Tata Motors. The Tiago.ev is based on the Tiago hatchback from the company and this month the company is offering savings of up to Rs 85,000 on the purchase of the Tiago.ev Long Range variants. This includes cash benefits of up to Rs 65,000 along with an exchange bonus of up to Rs 20,000.

The Tata Punch.ev is the entry level electric SUV from Tata Motors and this month the company is offering savings of up to Rs 70,000 on this EV. This includes cash benefits of up to Rs 50,000 along with exchange bonus of up to Rs 20,000.