With the arrival of 2025, electric vehicle (EV) buyers still have an opportunity to take advantage of discounts carried over from the year-end period.
Several leading manufacturers, including Tata, Hyundai, Mahindra, and MG, are providing benefits that reportedly range from ₹70,000 to ₹3 lakh on select models. The discounts vary depending on the vehicle variant and location, and the offers may not last long.
Popular models like the Nexon EV and XUV400 EV are said to feature some of the steepest reductions. Meanwhile, the two-wheeler segment also sees price cuts, with discounts between 10% and 20% on certain models. For instance, the Hero Motocorp Vida V1 Pro and V1 Plus offer cash discounts of ₹25,000 and ₹10,000, respectively.
Online platforms are also joining in, with marketplaces like Flipkart listing deals on electric two-wheelers, reportedly ranging from ₹2,500 to ₹5,000. Brands like Ather are offering benefits as well, with discounts between ₹3,000 and ₹7,000 on models like the Rizta and 450.
Multiple factors appear to be influencing this trend. Reports suggest that excess inventory, lower component costs, and Corporate Average Fuel Efficiency (CAFE) regulations are playing a good role. Some of these discounts are attributed to leftover festive season promotions, coupled with overproduction leading to high dealer inventories.
Experts have highlighted that this isn’t just a local phenomenon. Globally, the growth in EV sales has been slowing, but volumes are still expected to reach record levels. According to Srikumar Krishnamurthy, Senior VP & Co-Group Head (Corporate Ratings) at Icra, promotional offers have been widespread across the auto sector during and after the festive period, as reported by TOI. High dealer stock levels have likely contributed to the current price reductions.
While the pace of growth may have moderated, projections for the EV market remain optimistic. ICRA estimates that the EV segment's market share could grow from around 5.5% in FY25 to approximately 25% for two-wheelers and 15% for passenger vehicles by 2030. This potential expansion is also linked to CAFE norms, which are expected to influence automakers’ strategies in the years ahead.