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High court stays Delhi Govt that delisted the Tata Nexon EV from subsidy

After Tata Motors approached Delhi High Court against the decision of the Delhi Government to delist the Nexon EV from the subsidy, the high court has granted interim relief. The court has issued a notice and has directed the Delhi government to stay the order of delisting the Nexon EV from the subsidy list of Delhi.

Tata Motors challenged the Delhi Government’s decision to withdraw Rs 3,00,000 subsidy to the Nexon EV after receiving a complaint from a consumer. The owner of the Tata Nexon EV filed a complaint saying that he did not receive the range as certified and advertised by Tata Motors. As per the brochure, the Nexon EV returns a maximum of 312 km per full charge as certified by ARAI.

According to Tata Motor’s official statement,

“The Honourable Delhi High Court has issued 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.”

Because of the delisting, the customers had to pay a price of Rs 16.16 lakh for the Nexon EV base variant whereas, with the subsidy, the cost comes down to Rs 13.25 lakh. The Delhi government ordered the suspension of the subsidy officially from 1st March 2021. Tata Nexon EV remains the best-selling electric SUV in the Indian market and it is also the most affordable choice in the segment.

Tata Motors or Delhi Government has not commented on when the customers can get the subsidy again. Currently, it remains suspended but with the High Court order, the government should list the vehicle on the official list soon.

ARAI certifies the range

Automotive Research Association of India or ARAI is the authority that certifies fuel economy and range of EV in India. It is a government-affiliated institute and it also homologates the car international-spec car models when they are launched in the Indian market. The ARAI conducts the runs under test conditions, which is why the certified fuel efficiency and the range of the vehicle is always higher than the real life fuel efficiency or range. Different countries have different standards while checking for fuel efficiency and the range of the electric car. No doubt according to the different cycles of the different countries the range will change.

Complaints against the car manufacturers have happened in the past where the consumers have complained about the low fuel efficiency. However, no authority ever took such a drastic step of delisting the vehicle from getting a certain benefit. The Delhi government also announced earlier that they have formed a three member committee that are investigating the matter. The suspension is a temporary one and will be lifted after the findings of the committee. The Delhi government is yet to make a comment on the High Court order.