Tata Nexon EV demand hits the roof, but it’s wait ’n’ watch for Volkswagen

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The excitement for electric vehicles (EVs) on the back of the constant rise in fuel prices has helped demand for Tata Nexon EV jump four-fold in the last few months.

Tata Motors is struggling to supply enough Nexon EVs even though the vehicle is priced double the petrol version.

Buoyed by the response, Tata Motors added one more EV to its line-up, Tigor EV, on August 30, which is priced lower than the Nexon EV but has an almost similar drive range of slightly over 300 km. Tata Motors is expecting equally strong demand for the Tigor EV.

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, said: “The Nexon EV bookings have grown eight-fold, compared to the time of its launch and 3-4 times compared to a few months ago.”

Chandra did not disclose the order book Tata Motors has for Nexon EV but added that demand for EVs has gained a healthy momentum in the last 3-4 weeks, helped by encouraging support from state governments.

Why Volkswagen is not joining the party

But not every carmaker is excited about the EV frenzy in India, at least not yet. German automaker Volkswagen said it will stop making internal combustion engine cars for Europe by 2035, with an aim to overtake Tesla as the world’s largest EV maker by 2025.

To power its ambitious global goal, VW is spending $86.4 billion on electric and hybrid vehicle technologies, globally, but its green mobility march does not pass through India. The company wants to gauge India’s appetite for EVs before making any commitment.

Speaking to Moneycontrol, Gurpratap Boparai, Managing Director, Skoda Auto Volkswagen India, said: “When we talk about growth in the EV market, it is over a tiny base. I don’t see the overall EV market touching even 10,000 units. We will end up close to 6,000-7,000 this year. Those are not the volumes where one can localise. We will be here when the market size justifies it.”

In FY21, 4,588 electric cars were sold in India, representing 0.16 percent of the total domestic passenger vehicle volumes in the year. However, in FY22, Tata Motors sold more than one-third of the FY21 EV volume in just the April-June quarter itself.

 Volkswagen is discouraging local production due to the limited development of the supply chain network, negligible volumes and a very limited charging network. “We believe the mass segment viability for EVs will happen only in the second half of this decade,” Boparai added.

Taxation concerns

The German giant wants the Indian government to relook at the taxation structure on fully imported electric cars and make a suitable reduction to allow the segment to grow even faster. Players which manufacture EVs locally need not be bothered about the reduction in import duties, Boparai added.

Two of Tesla’s models, for instance, are priced in the range of $40,000 (Rs 30 lakh) in the US. Their retail prices in India would jump to at least $64,000 as per the current import tax structure, putting them in the same price bracket as the luxury models of Mercedes-Benz and BMW. This will not affect the sub-Rs 15 lakh segment where the bulk of the market would be.

“We will bring EVs but how the segment grows will depend on taxation. If we decide to assemble an EV here, and the government changes import duties, everything changes. Like the rest of the industry, we need a clear roadmap on duty structure,” Boparai added.