Reaction to GST Reduction | Hero Electric

Hero Electric India! GST reduction on electric vehicles from Mr. Sohinder Gill, CEO of Hero Electric India

“After the reduced subsidies and duty changes in FAME 2, the price of affordable segment Electric vehicles had gone up by around 20%. Reduction in GST is a very positive and a welcome move, as it will reduce the prices by 7%. This move also sends clear signals to the Industry on governments seriousness in promoting EVs. However even after the GST reduction, the prices of the affordable segment EVs will still be much higher than IC engine vehicles and will remain the biggest stumbling block for purchase. The Industry and the Government must work together to create price parity at-least for 2 to 3 years so as to trigger mass adoption.  Some of the steps requested by SMEV are- Subsidy on all the EVs should be INR 20000/Kwhr of battery as it is for the buses; financing by Public sector banks; mandating businesses that use polluting vehicles for their operations to switch to electric and a major awareness campaign on the benefits of EVs by the Govt under "Swachh Bharat" initiative. The GST on the spares batteries is still 18% and that should also be brought down to 5% to ensure that the EV users continue to enjoy the low running cost advantage.”