Planning to buy e-vehicle? EV firms trim prices after GST breather

Union Finance Minister Nirmala Sitharaman had announced a reduction in GST on EVs from 12 per cent to 5 per cent in her maiden Budget.

Owning an electric car and two-wheeler will now be easier on the wallet. With a steep reduction in the GST (goods and service tax) rate taking effect, manufacturers of EVs have reduced prices of their models — up to Rs 80,000 for e-cars and up to Rs 9,000 for e-two-wheelers.

In a bid to spur the EV demand, Union Finance Minister Nirmala Sitharaman had announced a reduction in GST on Electric Vehicles from 12 per cent to 5 per cent in her maiden Budget.

Sohinder Gill, director general at Society of Manufacturers of Electric Vehicles (SMEV), said EV makers, which mainly include eight two-wheeler makers, carmakers and three-wheeler makers, have passed on the benefit of the reduced GST rate.

“While it may not have much impact on the demand as the benefit from affordable two-wheelers will only be Rs 4000-5000, it will boost sentiment,” said Gill. Hero Electric, too, has reduced prices across its range, he added.

Tata Motors that sells the electric version of Tigor has reduced prices by up to Rs 80,000 across its variants, with effect from August 1. Tigor EV, which was earlier priced between Rs 12.35 lakh and Rs 12.71 lakh (ex-showroom price in Mumbai) and will now be available to customers between Rs 11.58 lakh and Rs 19.20 lakh.

“In light of the recent announcement made by the government to slash the GST rate for all electric-powered vehicles from 12 per cent to 5 per cent, the price of Tata Motors’ EVs will be reduced by up to Rs 80,000, starting 1 August 2019,” said Shailesh Chandra, president –Electric Mobility Business and Corporate Strategy, Tata Motors, in a statement. These prices, he added, do not include the FAME subsidy and TCS (tax collected at source).

Mahindra Electric, the EV-making arm of Mahindra & Mahindra, also announced price cuts. “Mahindra will pass on the benefits to customers across our entire product range with immediate effect. This tax cut, along with the strong FAME II policy, will see the adaption rate in EV going up drastically with a boost to India’s last- and first-mile mobility,” said Mahesh Babu, CEO Mahindra Electric.

Business Standard