Petrol, diesel vehicles eat into EV pie after GST cut
CHENNAI: Battery electric vehicle penetration in India’s two-wheeler and passenger vehicle segments lost momentum in 2025 after the reduction in GST rates for petrol- and diesel-powered vehicles from Oct, even as EV volumes saw healthy growth for the year.
The widened price gap between internal combustion engine (ICE) vehicles and EVs after GST reduction led to a spike in ICE sales in the Dec quarter, weighing on EV market share. The three-wheeler (3W) segment, however, stood out as an exception, recording an improvement in penetration levels during the year.
