These advancements highlight a maturing market where competition, regulatory policies, and innovation combine to make electric vehicles increasingly appealing to consumers.
Electric vehicle (EV) prices are decreasing due to various market dynamics, such as surplus inventory, reduced component costs, and the impact of Corporate Average Fuel Efficiency (CAFE) regulations. According to a report by the Times of India, both electric cars and two-wheelers are experiencing price reductions. Popular EV models like the XUV400 EV are reportedly available with discounts of up to Rs 3 lakh. At the same time, electric two-wheelers are being offered at price cuts ranging from 10 percent to 20 percent, depending on the model.
As manufacturers ramp up production to meet growing demand, they may have overestimated short-term market absorption. This surplus is leading to price cuts to clear inventory. Moreover, technological advances and economies of scale are reducing the cost of key EV components, like batteries and semiconductors, which are being passed on to consumers.These developments indicate a maturing market where competition, regulatory frameworks, and innovation are converging to make EVs a more attractive choice for consumers.
For instance, Hero MotoCorp’s Vida V1 Pro and V1 Plus offer cash discounts of Rs 25,000 and Rs 10,000, respectively. Similarly, the Nexon EV has seen a price reduction of up to Rs 3 lakh, the Punch EV by Rs 1.2 lakh, and the Tiago EV by Rs 40,000. Online platforms like Flipkart are also providing discounts on electric two-wheelers, ranging from Rs 2,500 to Rs 5,000. Ather scooters offer additional benefits, with the Rizta discounted by Rs 3,000 to Rs 6,700 and the 450 receiving price cuts between Rs 5,000 and Rs 7,000.
Srikumar Krishnamurthy, Senior VP and Co-Group Head (Corporate Ratings) at ICRA, told ToI that discounts and promotional offers were widespread across the entire auto sector during the festive and post-festive period, driven by high inventory levels at dealerships, particularly in the passenger vehicle (PV) segment. He also noted that the slower growth in EV sales is part of a global trend. “Although the growth rate is decelerating, EV sales volumes are still on track for another record-breaking year,” he added.
Manufacturers are absorbing most discounts, while dealerships contribute minimally. With exchange bonuses up to Rs 15,000 and trade discounts between Rs 3,000 and Rs 5,000, it’s a prime time to buy. Experts attribute these discounts to leftover festive promotions and excess inventory. The Investment Information and Credit Rating Agency, (ICRA) predicts significant growth in the EV segment, estimating its market share will rise from 5.5 percent in FY25 to about 25 percent for two-wheelers and 15 percent for passenger vehicles by 2030. This discounting trend is also linked to evolving CAFE norms affecting automakers.
