Why are Mahindra and Tata Motors offering big discounts on EVs?

Automakers are offering significant year-end discounts on EVs to stimulate demand, which has softened due to increased price competitiveness of petrol and diesel vehicles.

How did the GST cut affect electric car sales in India?

The GST cut on petrol and diesel cars in India widened the price gap with EVs, making them less affordable and contributing to a dip in electric vehicle sales.

Are luxury electric vehicles also seeing discounts?

No, the luxury EV segment is an outlier, with limited discounting and some models even having long waiting periods due to sustained demand.

Home / Business and Economy / Record Year-End Deals on Electric Cars Amidst Sales Dip

Record Year-End Deals on Electric Cars Amidst Sales Dip

9 Dec

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Summary

Automakers offer record year-end discounts on EVs to counter falling demand.
GST cut on petrol/diesel cars widened the price gap with EVs.
Luxury EV segment remains an outlier with long waiting periods.

Record Year-End Deals on Electric Cars Amidst Sales Dip

Automakers are rolling out record year-end discounts on electric vehicles (EVs) as they strive to reignite flagging demand. Manufacturers including Mahindra & Mahindra, Tata Motors, Hyundai, and Kia are participating in this aggressive sales push.

The slowdown in EV sales is partly attributed to a recent government decision to reduce the goods and services tax (GST) on petrol and diesel cars. This policy change, effective September 22, made internal combustion engine (ICE) vehicles more affordable, thereby increasing the price disparity with EVs and diminishing their competitive edge.

Despite these challenges, the luxury EV segment stands apart, with some models like BMW's iX1 experiencing waiting periods of up to four months. These luxury EVs are priced more competitively against their ICE counterparts, leaving less room for significant discounts.