Concessions in the Union Budget 2019 to push electric vehicles (EVs) to the fast lane were a bolt from the blue. Neither the industry nor analysts expected a battery of concessions to make EV ownership more viable.
On the contrary, the industry was hoping for incentives such as a lower goods and services tax (GST) rate or direct tax benefits that would boost consumer demand for sectors such as automobiles. The sector, particularly, has been languishing, with sales plummeting for almost a year.
The proposal to lower the GST rate for EVs from 12% to 5% and reduce customs duties on components reinforces the government’s commitment to move ahead on cleaner mobility.
