Fuel supply concerns, tax advantages for corporate buyers and incentive-linked sales targets have created an unusual alignment of market forces, prompting automakers to roll out aggressive offers to stimulate demand.
Carmakers, including Hyundai, Tata Motors, Mahindra & Mahindra and JSW MG Motor India, have introduced a mix of cash discounts, exchange bonuses corporate incentives, and extended warranty packages to boost EV sales, particularly for leftover inventory from earlier model years.
In several cases, dealers are also trimming their own margins to close deals before March 31.
Steep discounts across brands
Hyundai is currently offering the largest benefit in the market — up to ₹5.05 lakh on leftover MY2025 units of the Ioniq 5.
Mahindra & Mahindra is offering benefits of up to ₹4 lakh on the XUV400 EL Pro, while its newer BE 6 and XEV 9e electric SUVs carry total benefits of up to ₹2.95 lakh. The package includes celebration benefits, special March incentives, corporate perks and exchange bonuses, with the offers valid until March 27.
Tata Motors, the country’s largest electric passenger vehicle maker, is offering discounts of up to ₹3.8 lakh across select electric models as part of its ‘Mega March Carnival,’ including the Curvv EV, Nexon.ev and Tiago.ev.
JSW MG Motor India is pitching its Windsor EV with a different hook, free public charging for one year, alongside depreciation benefits that can reach up to ₹13.17 lakh for first-time business owners. The pitch is aimed squarely at small and mid-sized corporate buyers looking to electrify their fleets.
Corporate tax advantage
March is typically when corporate finance teams reassess capital spending to optimise tax outgo for the current fiscal year.
Under India’s tax rules, businesses can claim accelerated depreciation of up to 40 per cent on electric vehicles in the first year — more than double the 15 per cent rate allowed for conventional petrol and diesel vehicles.
For companies paying the standard 30 per cent corporate tax rate, the higher depreciation allowance can translate into substantial tax savings over time. Front-loading such deductions before the fiscal year ends can significantly lower taxable income for FY25, making EV purchases particularly attractive for businesses.
Fuel concerns drive inquiries.
Dealers say concerns around fuel price volatility and supply disruptions are also prompting more customers to explore electric mobility.
“There has been a noticeable surge in inquiries for EVs across categories,” said Sachin Mahajan, chairman of FADA Maharashtra. “In my own dealership for Switch Mobility in Nashik, we have seen more inquiries in the last few days for electric cargo vehicles as customers are concerned about the long-term availability of CNG.”
Vinkesh Gulati, chairman of the Automotive Skill Development Council and founder director of United Automobiles, which operates Bajaj and Mahindra dealerships in Delhi and Prayagraj, said buyers are increasingly evaluating total running costs.
“In two-wheelers and entry-level passenger cars, buyers are increasingly evaluating total running cost, and EVs offer a clear advantage with lower and more predictable operating expenses,” Gulati said. “For fleet operators in cargo and last-mile logistics, the shift could accelerate faster because they are highly sensitive to fuel cost volatility.”
PLI-linked sales push
Manufacturers also have an added incentive to push EV sales, as payouts under the government’s auto PLI scheme are linked to incremental sales of advanced automotive technology vehicles.
Government data show the Ministry of Heavy Industries has disbursed around ₹2,000 crore under the auto PLI scheme in FY26, including ₹625.65 crore to Bajaj Auto, ₹403.18 crore to Tata Motors, ₹320.51 crore to TVS Motor and ₹283.82 crore to Mahindra & Mahindra.. Total committed investment under the scheme has crossed ₹35,657 crore.
Demand rising but from a low base
Although from a low base, electric car sales have been growing steadily. EV car sales rose 44 per cent year-on-year to 13,733 units in February, according to the Federation of Automobile Dealers Associations (FADA), reflecting gradually improving acceptance of electric vehicles among both retail and institutional buyers.
However, dealers say inquiries have yet to translate into a sustained shift towards electric mobility.
Even today, we are seeing a sharp uptick in enquiries from customers wanting to try out EVs,” Manish Raj Singhania, managing partner at Raipur-based Ralas Motors, which has a Mahindra dealership, is the former president of FADA. “But the actual switch will get accelerated when petrol and diesel prices move up, we could see a sharp uptick in EV demand,” he said
Published on March 15, 2026