Not later than a few years, there will be a resonance of ‘Electric Vehicles‘ everywhere in Indian Markets. One of the electric vehicle manufacturers in India, Ather Energy conveys that it will give the entire benefits to its customers of reduced GST rates entirely supporting the government’s initiative to lower the Goods and Services Tax (GST) rate on electric vehicles to 5% from 12% earlier.
The reduction in GST rates will surely increase the demand for its electric vehicles in the market and to pick up with that, the company has already started stressing upon the manufacturing of the vehicles.
This considerable curb in the GST rates for electric vehicles will reduce the sticker price of its scooters by 8,000 to 10,000, eventually bringing down the rates of these electric vehicles closer to its oil-consuming equivalents. Ather Energy’s 450 scooter costs Rs. Rs 1,22,647 after Rs. 27,000 subsidy from the government. The company is gearing up with its production and is expecting everything to settle by the start of next year. For now, the company reaching out to the vendors where the range is less and even investing to increase production.
The company targets to produce 25,000 vehicles by the first quarter of the next FY from its own manufacturing units. They are even looking out for ways to compass outside their own units.
On a good note, the cost of Electric Scooters will come closer to its other counterparts because of the reduction in GST rates, which will involve many to buy electric scooters over petrol-driven vehicles.