Delhi govt delists electric version of Tata Nexon car from subsidy scheme

The Delhi government has delisted the electric version of the Tata Nexon car from its subsidy scheme for electric vehicles following complaints that the model failed to meet the specified range on a single charge, according to the order passed by Delhi’s transport commissioner.  

The move comes as a setback for Tata Motors in one of its biggest markets and makes the model less attractive in terms of the incentives. Buyers of four-wheelers in the personal segment in Delhi can claim an incentive of Rs 1.5 lakh to Rs 3 lakh depending on the vehicle type and speed, as per Delhi government’s EV policy. With an average sale of 100 units a month, the Nexon EV is the highest selling model in the country.

Last month, a show cause notice was issued to Tata Motors by the transport department about a complaint from a user of the Nexon EV claiming it did not meet the promised range of 312 km on a single charge of its battery.

The six-page order undersigned by Jyoti Seth, the deputy transport commissioner says “The reply furnished by Tata Motors has been found to non-satisfactory” pointing out that several users had complained of 'sub-standard' driving range offered by the Nexon electric vehicle (EV).

Reacting to the order a spokesperson from Tata Motors said, “It is unfortunate to receive this order from the Delhi Transport Commission” and the company will continue to engage constructively to protect the interests of its customers.

The Nexon EV is the only personal segment EV available in the market today that meets the stringent FAME norms. The range at single full charge (312 km) for the Nexon EV is basis the certification received from the Automotive Research Association of India (ARAI), which is the official body that independently tests all mass produced vehicles under standard/defined test conditions before they can be offered to customers, the spokesperson said.

The range achievement is also a function of familiarity with the new technology, and customers report improvements upwards of 10% within 4-6 weeks of familiarity, the spokesperson added pointing out that the company is “extremely confident about the value proposition of the Nexon EV.”  

According to the order, the company's assertion that the range of 312 kilometers is based solely on the test result of Automotive Research Association of India is not sufficient to “displace the basis of the complaint that the vehicle never provided a range more than 200 km. She also pointed out that Tata Motors has not made any effort to verify the complaint of the owner, Rajesh Kumar, by an independent third party.

Seth observed that instances like these—the actual performance of the vehicle not matching the manufacturers’ promise/indicated performance will lead to lack of trust in the EV vehicles in general, given that the technology is nascent.       

'The Delhi government has decided to suspend subsidy on an EV car model, pending the final report of a Committee, due to complaints by multiple users of sub-standard range performance,'  Delhi’s Transport Commissioner, Kailash Gahlot tweeted.

'We are committed to support EVs, but not at the cost of trust and confidence of citizens in claims by manufacturers,' he said.

With inputs from PTI