Delhi High Court Stays Govt Subsidy Removal Order on Tata Nexon EV

Published On: 11 March 2021
100 Views

As per the rules, the eligibility criteria for listing is 140 kms on a single charge and Tata Nexon crosses that mark quite comfortably.

Delhi High Court has stayed the AAP government’s order of removing subsidy on Tata Nexon EV. Recently, the Delhi Transport Department took the decision to remove Nexon EV from the list of eligible electric vehicles that attract subsidy under the government’s Electric Vehicle (EV) Policy. The decision was taken after a Najafgarh resident levelled the allegation of Nexon EV not offering the claimed range by the manufacturer. The transport department found that there was a difference between the real-world range and ARAI certified one of 312 kms.

The order was passed by Justice Sanjeev Sachdeva on Wednesday, March 10, 2021. It was based on the current policy and central motor vehicles rules. As per the rules, the eligibility criteria for listing is 140 km per charge and Tata Nexon crosses the mark quite comfortably. The statutory body Automotive Research Association of India (ARAI) issued a certificate that Tata Nexon EV has a range of 312 kms on a single full charge. The court observed that the 140 kms per charge qualification range of the Nexon EV is not disputed and hence, there is no valid reason why it cannot be a part of the subsidy arena.

“It is common knowledge that performance of a vehicle would depend on the driving conditions as well as driving capabilities of the driver and the road and traffic conditions,” said the court. It further added that the complaint against the vehicle doesn’t even hint that the minimum range of even 140 kms per charge was not met by the Tata Nexon EV.

For EV buyers, Delhi is an attractive place to purchase one because of its affordability. The Arvind Kejriwal led government offers road tax & registration fees waivers and subsidies on the purchase of electric vehicles in the National Capital. This decision came as a shock for Tata Motors considering Nexon is the leader in the EV segment in India.

Tata Motors spokesperson released a statement on the Delhi High Court order. The spokesperson said “The Honourable Delhi High Court has issued a 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.”

As we know, multiple factors impact the range of an EV across the world. The range is dependent on certain factors like road conditions, terrain, AC usage, speed and driving style. More clarity on the range is expected in the coming days from the Indian government. The new dispute puts the Indian government in a bind considering there has been a big push towards EV adoption in the country. With Tesla slated to enter the Indian market, there is an urgent need to clear the cloud over EV range and other issues.