Why are automakers offering significant discounts on electric vehicles in March?

Automakers are offering steep discounts on electric vehicles before the financial year ends on March 31 to accelerate sales, driven by fuel uncertainty, fiscal incentives, and production-linked incentive targets.

How do corporate tax rules benefit electric vehicle purchases in India?

Indian tax rules allow businesses to claim accelerated depreciation of up to 40% on electric vehicles in the first year, offering substantial tax savings and making EV purchases attractive for companies.

What is the impact of the Production Linked Incentive (PLI) scheme on EV sales?

Manufacturers are motivated to push EV sales because payouts under the government's auto PLI scheme are linked to incremental sales of advanced automotive technology vehicles.

Home / Business and Economy / EV Discounts Soar: Automakers Slash Prices by ₹5 Lakh!

EV Discounts Soar: Automakers Slash Prices by ₹5 Lakh!

15 Mar

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Summary

Automakers offer discounts up to ₹5 lakh on electric vehicles.
Corporate buyers benefit from accelerated depreciation on EVs.
PLI scheme payouts are linked to incremental sales of advanced vehicles.

EV Discounts Soar: Automakers Slash Prices by ₹5 Lakh!

Automakers are aggressively discounting electric vehicles (EVs) before the close of the financial year on March 31. Discounts can exceed ₹5 lakh, spurred by fuel concerns, fiscal incentives, and production-linked incentive (PLI) targets. Hyundai offers up to ₹5.05 lakh on Ioniq 5, while Mahindra provides up to ₹4 lakh on XUV400 EL Pro. Tata Motors offers up to ₹3.8 lakh on select EV models.

Corporate tax advantages significantly boost EV appeal. Businesses can claim accelerated depreciation of up to 40% on EVs in the first year, offering substantial tax savings. This makes upfront EV purchases highly beneficial for companies looking to optimize their tax liabilities for FY25. Fuel price volatility and supply concerns are also driving customer interest in electric mobility.

Manufacturers are motivated by PLI scheme payouts tied to incremental sales of advanced automotive technology vehicles. Despite rising inquiries, sustained sales shifts are pending. However, EV car sales grew 44% year-on-year to 13,733 units in February, indicating growing acceptance.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.