EV cos take corporate route to amp up sales

Electric carmakers are making a strong pivot towards corporates this month with aggressive deals, betting that financial year-end tax planning will drive demand for their eco-friendly vehicles. With barely weeks left before the year-end, automakers are bundling cash discounts, exchange bonuses and corporate perks ranging from ₹1.8 lakh to ₹5.2 lakh. This is in addition to accelerated depreciation of up to 40% on EVs, compared with 15% on petrol and diesel vehicles, in the first year. For companies looking to optimise taxable income, this can translate into substantial tax savings.

“Almost every other electric carmaker is offering benefits to lure the corporate buyers,” said a dealer.” “It helps in an incremental sale of at least 15-20%,” said another dealer. Automakers such as Tata Passenger Electric Mobility, Mahindra & Mahindra, JSW MG Motors, VinFast, BYD, Kia India and Tesla are capitalising on the window with a range of limited-period offers and corporate-focused incentives aimed at fleet buyers and businesses considering electrification of their vehicles.

They have rolled out March-end campaigns combining purchase incentives with ownership benefits to encourage companies to close deals before the fiscal year ends. Some are also pitching additional ownership benefits such as public charging access, extended warranties and maintenance packages, targeting small and mid-sized businesses looking to electrify their fleets.

The offers are being framed around the tax advantages available to businesses purchasing electric vehicles before the books close on March 31. March is typically when corporate finance teams reassess capital spending to optimise tax outgo for the current fiscal.

Under India’s tax rules, businesses can claim accelerated depreciation of up to 40% on electric vehicles in the first year. This could translate into substantial tax savings over three years, given a 30% corporate tax rate.

Front-loading such deductions before the fiscal year ends can meaningfully lower taxable income for FY25.

Although from a low base, electric car sales have been growing at a brisk pace. Sales rose 44% year-on-year to 13,733 units in February, according to the Federation of Automobile Dealers Associations (Fada), reflecting growing acceptance of EVs among both retail and institutional buyers. It jumped 84% to 175,364 units in the first 11 months of fiscal FY26, according to the government’s Vahan portal.

Several domestic and global manufacturers have joined the fiscal year-end push with special campaigns that highlight depreciation benefits and lower operating costs of EVs. Automakers are also bundling ownership perks such as extended warranty coverage and maintenance packages as part of the promotional push.

Some like Tesla and VinFast are also sharpening corporate-focused schemes with programmes that are aimed at customers transitioning from diesel and petrol vehicles by lowering upfront costs and offering flexible financing structures.

For automakers, the March sprint serves a dual purpose-clearing inventory ahead of new model launches while locking in bulk fleet deals. For corporates, the motivation is simpler-smart tax planning, with a greener balance sheet as a bonus.