Tax change can force EVs to win on value

TCO, NOT TAX BREAKS, WILL DEFINE THE WINNER: OSM

- VIKRAM CHAUDHARY

INDIA'S PUSH FOR green mobility has hit an interesting crossroads. The recent reduction of the goods and services tax (GST) on petrol, diesel, and CNG three-wheelers from 28% to 18% has narrowed the price gap with their electric counterparts, which retain a favourable 5% GST rate. This reform, intended to boost the overall auto sector, has sparked concern among some in the electric vehicle (EV) industry that price-sensitive buyers might revert to internal combustion engine (ICE) options.

But Uday Narang, founder of the commercial electric mobility firm Omega Seiki Mobility (OSM), views the GST reduction as a catalyst for efficiency and innovation within the EV space.