Proposed GST Cuts Could Diminish the EV Sector’s Growth in India

The Indian government’s plan to reduce GST on small cars may negatively impact the electric vehicle sector, potentially decelerating the EV industry’s expansion. Concerns have been expressed in a report from HSBC Investment Research. The report highlights that reducing GST on small cars could undermine the price benefits currently enjoyed by EVs. Under the proposed new GST framework, the government intends to eliminate two tax brackets. Specifically, the 12% and 28% GST slabs will be removed.