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Tata Motors moves HC over Delhi govt’s suspension of Nexon EV subsidy

By Priyanka Verma 
Updated Date

Tata Motors has moved the Delhi High Court against the Delhi government’s temporary suspension of subsidy on its electronic vehicle Nexon. The Delhi government took the decision based on complaints of sub-standard range performance.

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Tata Motors in its plea has claimed the government took the extreme step based on an isolated complaint by a disgruntled and unsatisfied consumer.

The Nexon EV is fitted with a 30.2 kWh battery pack with a claimed range of up to 312 kilometers against one full charge. But the government said it decided to suspend subsidy on an EV car model, pending the final report of a committee appointed by it, due to complaints by multiple users of substandard range performance.

Opposing the move Tata Motors was mentioned as saying, “despite Tata Nexon EV having undergone rigorous testing and having cleared all the specifications of both the Centre and state government for being eligible for subsidy under the electric vehicle policy, the government of NCT of Delhi upon receiving a complaint from one purchaser, issued a show cause notice.”

The plea said that just like any other type of vehicle (diesel, petrol, CNG, etc.), the actual range (mileage) in electric vehicles is also dependent on a large number of other factors.

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The Delhi government’s removal of Tata Nexon EV from the incentives list has deeper implications. Other potential EV customers are likely to put on hold their plan to purchase the EV as an inquiry is underway to find Tata Motor’s claims.

Worth mentioning here is that electric vehicles are far more expensive than their petrol/diesel counterpart. Automakers believe Delhi government’s order would also hit sales of other EVs as customers will be more sceptic about their performance.

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