20/04/2024
Government has reduced GST rates on electric vehicles from 12% to 5%. So, now the differential between International Combustion Engine and Electric vehicles is about 23%. If one considers a Rs 6 lakh vehicle price, the benefit would be about Rs 1.3 lakhs. With benefits in fuel efficiency that can deliver about Rs 30000-35000 per year additional benefits, the difference of Rs 3 lakhs between ICE vehicle and Electric vehicles might get bridged. It means that if Auto industry is able to get good electric options in the market, the transition can start happening and could be visible in the next five years.