The government at the 36th GST Council Meeting made a strong push for green modes to transport by slashing the GST rate on the cleaner vehicles from 12% to 5%. Additionally, the council has also reduced the GST rate on chargers or charging stations for electric vehicles from 18% to 5%. As a result, manufacturers of electric vehicles like Okinawa, Ather, and Ampere have also reduced the prices of their vehicles to share the benefit with the customers.

Okinawa Scooters has announced that the prices of Okinawa range under Lead Acid have now reduced by Rs 2,500 – Rs 4,700 and in Li-ion range the cost has reduced by Rs 3,400 – Rs 8,600. Following the GST cut and the FAME II subsidy, the on-road prices of electric scooters have reduced dramatically.
Mr Jeetender Sharma, Founder & Managing Director, Okinawa Autotech Pvt. Ltd. said, “The Union budget gave a much-needed push to the EV industry and the GST rate cut is even more welcoming. The 7% GST reduction has reduced the upfront cost of buying Okinawa scooter by Rs 2,500 – Rs 8,600. This coupled with FAME-II subsidies will take a significant chunk out of the acquisition price, making our range of scooters strong options for urban commuters.”

“This latest concession for sustainable mobility has reduced the price gap between the EVs and the IC engine vehicles. Rising affordability will foster faster adoption of electric vehicles. The GST rate cut has reduced the ex-showroom prices of electric two-wheelers in India and is expected to increase demand for cleaner vehicles. We are confident that it would encourage more and more people to look at electric vehicles as a viable option”, Mr Sharma added.

The Centre’s GST rate cut follows a slew of incentives announced in the latest budget to accelerate the adoption of electric vehicles in India. The Union Budget introduced an additional income tax deduction of Rs 1.5 lakh on the interest paid on a loan taken to purchase an electric vehicle. This amounts to a benefit of around 2.5 lakh over the loan period to the taxpayers who take loans to purchase an electric vehicle.

In addition to Okinawa Scooters, Ampere and Ather have also decided to reduce the price of their vehicles. The cost of the Rio LA e-bike has been sliced by Rs 3,000 to Rs 40,000 and that of the Rio Li e-bike to Rs 52,500 from Rs 56,000 prior, the organization said. Ather has decided to cut down INR 9,000 from all the models available. In the refreshed value list, the Ather 350 is evaluated at INR 1,02,460 and INR 1,10,443 in Bangalore and Chennai, respectively. The other model from the organization, Ather 450, is estimated at INR 1,13,715 and INR 1,22,224 in Bangalore and Chennai, respectively.