The major car manufacturers of India, like Hyundai, Kia, Mahindra, Tata Motors, and JSW MG, are now dealing with their electric vehicles (EVs) through substantial discount schemes in December 2025. The primary aim of these incentives is to dispose of the year-end stock when a tax revision on September 22 made petrol and diesel cars much cheaper. The demand for EVs has also diminished, and the new car model for 2026 is on the edge, so the manufacturers are offering heavy discounts to draw in customers.
Incentives Drive Sales
To encourage sales, the companies are providing considerable advantages on all their electric models. The highest value offers, such as those on the Tata Curvv EV and Mahindra XEV 9e, continue to be as much as ₹ 3.5 lakh in total. An example is JSW MG, where the Comet EV gets a discount of about ₹ 1 lakh, while certain styles of the ZS EV get a discount of about ₹ 1.35 lakh.
Shift in Market Dynamics
The primary reason for the greater discounts has been linked to a Goods and Services Tax (GST) reduction that was implemented for Internal Combustion Engine (ICE) vehicles in September. The tax cut effectively reduced the price gap between ICE and EVs and thus diminished the whole cost-advantage argument that had been attracting a lot of customers to electric mobility.
Stock Clearance Needed
Manufacturers now want to deplete their 2025 stock fast ahead of the upcoming models. Even after a massive increase in EV volumes in November 2025 (up 63% year-over-year), EV penetration still decreased to roughly 3.7% of the total passenger vehicle market, dropping below the 5% level that was recorded before the GST revision happened.
Discount Overview
Big EV manufacturers have expanded their discounts program to include multiple models rather than just a few. This shows that the entire market is attempting to maintain stable sales while managing rising inventory levels. In contrast, the luxury EV segment continues to provide little to no discounts, and high-demand models such as the BMW iX1 still have waiting lists.
