Good news for electric vehicle (EV) fans! The cost of batteries is going down, which means EV prices will also drop. Tata Motors has recently announced that the price of its Nexon EV will be reduced by Rs 3 lakh. The company said it is passing on the savings from cheaper battery prices to customers. Mahindra is also cutting the price of its XUV400 EV by Rs 3 lakh.
Big Discounts on EVs
Many car makers, including Tata Motors, Mahindra, Ather Energy, and Hero MotoCorp, are offering big discounts on their electric vehicles. This is because they have extra stock after making too many cars during the festival season.
These discounts are also partly because companies need to meet certain rules called CAFE norms (Corporate Average Fuel Efficiency). These rules check how fuel-efficient a company’s cars are, based on all their models together, not just one. If a company does not meet the fuel efficiency rules, it can face fines.
If a company’s vehicles don’t meet the required standards, the fine can be Rs 25,000 per car for a small difference, or Rs 50,000 if the company goes over the allowed limit.
Why Are the Discounts So Big?
Tata Motors has explained that the price cuts are because the cost of EV batteries is falling. They clarified that the discounts are not because of overproduction or CAFE rules. Mahindra, Hero, and other companies have not made similar statements yet.
Why Are Battery Prices Dropping?
The price of EV batteries is going down because the cost of raw materials used to make the batteries has fallen. Also, there has been overproduction of battery cells, which has helped lower the price.
Should You Buy an EV Now?
If you are thinking about buying an electric car or bike, now is a good time. The main reasons are the big discounts being offered by many companies, as well as exchange bonuses. Also, registration fees and taxes (GST) for EVs are lower than for traditional cars, and EVs cost less to maintain. Plus, the technology and quality of EV batteries are improving, making them a better choice.