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Delhi govt vs Tata Motors: HC stays AAP govt's order to withdraw subsidy on Nexon EV

The Kejriwal government recently delisted the Tata Nexon EV from its subsidy scheme for electric vehicles.

Edited by: India TV News Desk New Delhi Published on: March 11, 2021 15:10 IST
Nexon EV price, Nexon EV subsidy in delhi
Image Source : PTI (FILE)

HC stays AAP govt's order to withdraw subsidy on Nexon EV

The Delhi High Court has stayed the Arvind Kejriwal government's decision to remove electric version of the Tata Nexon car from the list of electric cars that receive the subsidy. The court has now asked the city government to file a counter affidavit.

The AAP government earlier this month delisted the Tata Nexon EV from its subsidy scheme for electric vehicles following complaints that the model failed to meet the specified range on a single charge.

According to Transport minister Kailash Gahlot's claim, several users had complained of ‘sub-standard’ driving range offered by the Nexon electric vehicle.

"The Delhi government has decided to suspend subsidy on a EV car model, pending final report of a Committee, due to complaints by multiple users of sub-standard range performance," Gahlot had tweeted while reiterating that the government is committed to support EVs, but not at the cost of trust and confidence of citizens in claims by manufacturers.

Tata Motors, the manufacturer of Nexon EV, moved the High Court on March 9 against the government's decision to withdraw subsidy on the vehicle. 

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 single charge of its battery. Tata Nexon EV is India's largest selling electric car.

Under the Delhi government's EV policy, a purchase incentive of Rs 10,000 per KWh of battery capacity is given on an electric four-wheeler. The incentive is capped at Rs 1.50 lakh. The policy was notified in August 2020 with a vision to promote adoption of electric vehicles to improve Delhi's air quality. The policy intends to deploy 25 per cent of all new vehicles to be battery-operated vehicles by 2024.

READ MORE: Delhi govt suspends subsidy on Tata Nexon EV

READ MORE: Tata Nexon EV crosses 2,000 sales mark; record 1,000 SUVs sold in 3 months

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