Tata Motors has recently announced the launch of a subscription-based ownership plan for its electric offering, Nexon EV. With the step, the company aims to make the ownership for Nexon EV more accessible and convenient for potent buyers.
Like Maruti Suzuki which launched the subscription-based ownership plan about a month back, Tata has also collaborated with Orix Auto Infrastructures. As the two companies share a common partner, there are quite a few similarities between the programs launched by the Indian automotive giants.
Tata Nexon EV: Subscription Scheme
Under this scheme, Tata is asking to pay a refundable security deposit of Rs 50,000 to start with, and monthly subscription charges will follow after that as per the tenure opted for.
The plan offers the convenience of owning Tata’s flagship electric offering on a subscription-based model, for a minimum period of 18 months and a maximum period of 36 months. On the expiry of the plan, beneficiaries will be provided with the option of extending the subscription or they can even return the car back.
If the buyers opt for the shortest tenure, they would have to shell out a total of ₹8.64 Lakhs, while picking the longest tenure will lead to the buyer spending a total of ₹15.12 Lakhs over the three-year tenure
The subscription-based ownership services can be availed at five major cities as of now – Delhi/NCR, Mumbai, Pune, Hyderabad and Bengaluru.
Tenure | Monthly Installment |
18 months | ₹47,900 |
24 months | ₹44,900 |
36 months | ₹41,900 |
Tata's Official Statement
Shailesh Chandra, President, Passenger Vehicles Business Unit announced the launch of the subscription-based programme and remarked that EV Vehicles are future moving ahead and this move aims to capitalise on the same. He said-
"EVs are the future, and as the leader of this fast-growing segment, Tata Motors is committed to popularise their access and use in India. With this novel subscription model, we are making it more convenient for interested users of EVs to experience their myriad benefits. It is ideal for customers preferring ‘users’ over ownership in the rapidly growing era of the shared economy."
What services can you avail with the subscription?
- Included as a part of subscription package, Orix will provide home charger with upto 15m of wiring, and will also take care of routine services and maintenance activities.
- There is an upper limit to the number of kilometers that the car can be driven in a month and it stands at 1500 km.
- The annual ceiling stands at 18,000 kilometers and if the beneficiary intends to drive past the limit, per kilometer premium is charged at Rs 7.
- For remote locations, where charging may not be available, Orix will provide the option of availing a 30% discount on a self-drive, IC Engine vehicle.
- The minimum of 18 months' tenure also happens to be the lock-in period of the subscription. It means that if the user returns the car before completion of this lock-in period, the user will have to pay a cancellation fee equivalent to monthly subscription fees and 25% of the due subscription fee, until completion of tenure.
- Orix will also provide the user with the option of buying the unit which they have been using if they want so.
Author’s Take
Nexon EV is a decent offering, based on the very practical SUV which ticks out a lot of boxes rightly, it is one of the more reliable EVs on sale in India at the moment. With a subscription-based ownership model on offer, the practicality that it offers will receive a boost, as it will be a great choice for corporate employees where job demands frequent inter-city travels.
It does not have a direct rival as such, as it is the lone EV offering in the concerned price range. The Nexon EV surely can be given a thought as an affordable yet potent alternative to higher-priced MG ZS EV and Hyundai Kona.
