Tata Motors secures Delhi HC stay on delisting of Nexon EV

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The Delhi High Court granted interim relief to Tata Motors by directing a stay against the delisting of the Nexon EV by the Delhi Transport Corporation (DTC).

“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”, a Tata Motors spokesperson said.

The Mumbai-based company had challenged the AAP government’s decision to withdraw Rs 300,000 subsidy to the Nexon EV. DTC’s decision to remove the subsidies was based on a complaint by an alleged owner of the vehicle who claimed that his Nexon EV was delivering a mileage much less than indicated by Tata Motors.

The delisting of the Nexon EV pushed its on-road retail price to Rs 1,616,393. With the subsidy, the on-road price of the SUV would be Rs 1,325,893. The suspension was with effect from March 1, 2021, the day when the Delhi government announced the order.

The Nexon EV has clocked cumulative sales of more than 3,000 units since its launch in January 2020 and is already the highest-selling electric car in India. Tata Motors did not specify the number of Nexon EV units it sells in Delhi. The Delhi government subsidy, however, is the highest in India, making it a very lucrative market.

There is also a subsidy of Rs 300,000 offered by the central government under the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. This subsidy though can be availed only if the Nexon will be used for commercial purposes.