With electric vehicles getting a boost in terms of GST reduction, a price reduction is an immediate outcome. Okinawa Scooters has announced of price reduction for its Okinawa range under Lead Acid by Rs 2,500 – Rs 4,700. The Li-ion range cost reduction is between Rs 3,400 – Rs 8,600. Okinawa electric scooter range on offer includes i-Praise+, Ridge+, Ridge, Praise, Raise and Ridge 30.
Jeetender Sharma, Founder and 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 percent 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.”
FAME II subsidy has had a direct impact on on-road price of electric vehicle made in India. The boost for electric transport gets a direct and immediate shot in the arm with GST reduction. GST rate on charger or charging stations for electric vehicles has been reduced from 18 per cent to 5 per cent to help provide an overall impetus rather than just being a development on paper.
With the current concession implemented, price gap between the EVs and ICE vehicles reduces. Concerns regarding larger adoption of EVs revolve around price gap, vehicle range, service, and infrastructure. If EVs were made more affordable through subsidies and bonuses, it would generate more market interest.
GST rate cut has reduced ex-showroom prices of electric two-wheelers. It now remains to be seen if the move alone can help increase demand in the segment.
Centre’s GST rate cut is in conjunction with incentives announced in the latest budget to improve the reputation of electric vehicles in India. Union Budget has introduced additional income tax deduction of Rs 1.5 lakh on interest paid on a loan taken to purchase an electric vehicle. It accounts to a benefit if about Rs 2.5 lakh over the loan period.