Nexon EV demand reaches the same level as diesel variant, claims Tata
Tata Motors has witnessed a pretty good response with the Nexon EV since its launch. With the introduction of the Nexon EV, the compact SUV's appeal has gone upward. The Tata Nexon EV is currently the bestselling electric passenger vehicle in India. The Nexon EV has also registered the same level of demand as the SUV's diesel variant, as claimed by the automaker.
Speaking to media during the automaker's earning call, PB Balaji, Chief Financial Officer, Tata Motors has said that the order book for Nexon EV in July 2021 is neck to neck to the diesel variant. "The combination of FAME-II benefits and subsidies provided by the state government is making EVs extremely attractive."
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Balaji also said that Tata Motors is hopeful about the Nexon EV's penetration in the total sales volume reaching 5% very soon. The electric compact SUV's share in Tata Motors' total sales was just 0.2% even two years ago, as Balaji further added.
Buoyant by the demand for Nexon EV, Tata Motors has announced that it plans to launch as many as 10 electric vehicles by 2025. It will also invest significantly in EV charging infrastructure.
In the first quarter of FY22, between April-June, Tata Motors sold 1,716 units of the Nexon EV. This was out of 53,800 Tata Motors cars sold in the same quarter.
The states such as Gujarat and Maharashtra have recently announced their respective EV policies. These EV policies focus on demand creation by offering subsidies to consumers. Also, they focus on offering subsidies to the EV manufacturing stakeholders and charging infrastructure developers.
With such comprehensive state EV policies in place, Delhi, Gujarat and Maharashtra are among the states where demand for Nexon EV is high. These EV policies along with the central government's FAME-II scheme are reducing the price gap between Nexon EV and Nexon diesel. Apart from that, the skyrocketing prices of petrol and diesel too are encouraging the consumers to buy Nexon EV over diesel variant.