The Tata Nexon EV is one of India’s most popular electric SUVs, offering excellent performance, range, and affordability. Government subsidies have played a significant role in making EVs like the Nexon EV more accessible. Here’s everything you need to know about the subsidies available for Tata Nexon EV buyers in India.
1. FAME II Subsidy
| Aspect | Details |
|---|---|
| Full Form | Faster Adoption and Manufacturing of Electric Vehicles in India (Phase II) |
| Eligibility | EVs priced under ₹15 lakh (ex-factory) qualify for the subsidy. |
| Incentive Amount | ₹10,000 per kWh of battery capacity (up to ₹1.5 lakh). |
How It Benefits Nexon EV Buyers:
- The Tata Nexon EV Prime qualifies for the subsidy, reducing its upfront cost significantly.
- The Nexon EV Max does not qualify as its ex-factory price exceeds ₹15 lakh.
2. State-Level Subsidies
| State | Subsidy Amount | Additional Benefits |
|---|---|---|
| Delhi | ₹10,000 per kWh (up to ₹1.5 lakh) | Road tax and registration fee exemption. |
| Maharashtra | ₹5,000 per kWh (up to ₹1.5 lakh) | Early bird incentive of ₹1 lakh. |
| Gujarat | ₹10,000 per kWh (up to ₹1.5 lakh) | Lower electricity rates for EV charging. |
| Tamil Nadu | No direct subsidy | 100% exemption on road tax. |
| Karnataka | No direct subsidy | Road tax waiver for EV buyers. |
How It Benefits Nexon EV Buyers:
- Buyers in states like Delhi, Gujarat, and Maharashtra enjoy significant price reductions.
- Additional perks like road tax waivers and free registration further lower costs.
3. Tax Benefits Under Section 80EEB
| Aspect | Details |
|---|---|
| Eligibility | EV loans availed by individuals. |
| Tax Deduction | Up to ₹1.5 lakh on interest paid on EV loans. |
| Validity | Applicable for loans sanctioned between April 1, 2019, and March 31, 2025. |
How It Benefits Nexon EV Buyers:
- Buyers financing the Nexon EV can save significantly on income tax by claiming this deduction.
4. GST Reduction
| Aspect | Details |
|---|---|
| Applicable GST Rate | 5% (compared to 28% for ICE vehicles). |
How It Benefits Nexon EV Buyers:
- A lower GST rate directly reduces the ex-showroom price of the Nexon EV, making it more affordable.
5. Corporate and Fleet Incentives
| Aspect | Details |
|---|---|
| Corporate Discounts | Some companies offer EV purchase incentives to employees. |
| Fleet Buyers | Lower road tax and registration fees in several states. |
How It Benefits Nexon EV Buyers:
- Corporate buyers and fleet operators can reduce costs through these additional incentives.
6. Cost Comparison: Nexon EV with Subsidies
| Variant | Ex-Showroom Price (₹) | FAME II Subsidy (₹) | State Subsidy (e.g., Gujarat) | Effective Price (₹) |
|---|---|---|---|---|
| Nexon EV Prime XM | ₹14.49 lakh | ₹1.5 lakh | ₹1.5 lakh | ₹11.49 lakh |
| Nexon EV Max XZ+ | ₹16.49 lakh | Not Applicable | ₹1.5 lakh | ₹14.99 lakh |
7. Steps to Claim EV Subsidies
- Check Eligibility:
- Confirm that the variant you’re purchasing qualifies for FAME II or state subsidies.
- Dealer Support:
- Dealers often process the FAME II subsidy directly, reflecting it in the invoice price.
- State Applications:
- Apply for state-specific subsidies through the respective portals if required.
- Tax Benefits:
- For loans, retain interest payment proofs to claim the Section 80EEB deduction during tax filing.
8. Additional Savings
| Aspect | Details |
|---|---|
| Running Costs | ₹1–₹2 per km (compared to ₹6–₹8 for ICE vehicles). |
| Maintenance Savings | EVs have fewer moving parts, reducing service costs by ~40%. |
| Charging Infrastructure | Subsidized home charger installation in some states. |
Conclusion
The Tata Nexon EV, especially the Prime variant, offers excellent value for money when combined with FAME II and state-level subsidies. Buyers can further maximize savings with tax benefits under Section 80EEB and reduced running costs.
By leveraging these incentives, Indian buyers can make a smart and sustainable investment in the Nexon EV, contributing to a greener future while enjoying long-term financial benefits.
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