Tata Nexon EV Case: HC Stays Delhi Government’s Subsidy Ban Order

The electric sub-4m SUV will continue to benefit from EV subsidies in the capital for the time being

• Delhi High Court stays the Delhi government’s decision to delist Nexon EV from its EV policy eligibility list.

• Under Delhi’s EV policy, the first 1,000 EV buyers get a subsidy of up to Rs 1.5 lakh among other benefits.

• Nexon EV’s eligibility for the subsidy was a key incentive for buyers to switch to the relatively affordable EV.

• Delhi government delisted the Nexon EV over consumer complaints regarding the real range falling drastically short of the claimed 312km figure.

• The case is still open but the stay order has given interim relief to the carmaker and Nexon EV buyers.

The Delhi government recently delisted the Tata Nexon EV from the models eligible for benefits under the Delhi EV policy. The carmaker, however, contested the decision and approached the Delhi High Court which has now provided interim relief by issuing a stay on the subsidy ban order.

Commenting on the court’s stay order, a Tata spokesperson said, “The Honourable Delhi High Court has issued notice on our writ and granted interim relief by directing a stay against the delisting of Nexon EV from Delhi government’s eligible list of vehicles. The Honourable High Court has granted time to the Delhi government to file counter affidavit in the matter.”

Under the EV policy, the first 1,000 electric four-wheeler buyers get an incentive of up to Rs 1.5 lakh. The Nexon EV with its 30.2kWh battery pack was eligible for the maximum savings which further incentivised potential customers to switch to the electric SUV. However, a recent consumer complaint regarding the real-world range of the EV falling short of the advertised ARAI-certified range saw the Delhi government delisting the Nexon EV. Tata argued that its vehicle still meets all the conditions for eligibility as stated by the EV policy and the FAME India Phase-II scheme but the Delhi government saw the need for strong action.

While the Delhi High Court’s stay order comes as a relief for the carmaker, there will still be further investigation into the original complaint: real-world electric range falling short of the claimed figures. The outcome of this case could alter the way EV range is advertised in the future with doubts over ARAI certification that is achieved in unrealistic test conditions. 

Presently, the Nexon EV has a claimed range of 312km on a full charge. The consumer complaint stated that his particular model would never achieve more than 200km from a single charge despite following the advice of his Tata dealer. Meanwhile, a few have managed to regularly achieve more than 250km of range, sometimes by optimising driving style to better use an EV as opposed to an internal combustion engine model. In our own range tests with the Nexon EV, we achieved 280km in the city and 211km on the highway.

• Tata Nexon EV: Real World Performance And Efficiency Numbers

The Nexon EV, priced from Rs 13.99 lakh to Rs 16.39 lakh (ex-showroom Delhi), is currently the most affordable long-range EV in India. Electric SUVs such as the Hyundai Kona Electric and MG ZS EV are more premium offerings with added performance, increased range, and prices above the Rs 20 lakh mark.

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