Okinawa Autotech has announced revised prices for its electric scooters post the GST rate cut. The Okinawa range under Lead Acid is affordable by INR 2,500-4,700, while the Li-ion range gets a cost reduction of INR 3,400-8,600. The GST cut, along with the FAME II subsidy, has made the on-road price of the Okinawa vehicles much affordable than before.
Regular readers would know that the government slashed the GST rate on electric vehicles from 12% to 5%. The council also reduced the GST rate on the charger or charging stations for electric vehicles from 18% to 5 %. The new prices are effective from 1 August.
Speaking about the GST rate cut and the subsequent price reduction of electric vehicles, Jeetender Sharma, Founder & Managing Director, Okinawa Autotech, said:
The Union budget gave a much-needed push to the EV industry and the GST rate cut is even more welcoming. The 7% GST reduction has reduced the upfront cost of buying Okinawa scooter by INR 2,500 – INR 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.
Apart from the GST cut, the Union Budget 2019 also introduced an additional income tax deduction of INR 1.5 lakh on the interest paid on electric vehicle loans. The overall benefits amount to approximately INR 2.5 lakh over the loan period to the taxpayers. The latest initiatives of GST rate reduction and other tax benefits are aimed to boost the sales of electric vehicles. The government targets to achieve mass electrification of two-wheelers by 2025.
Ather Electric, too, announced a price cut post the GST rate reduction, and its entry-level product, the 340, is now available at INR 1,02,460, while the 450 retails at INR 1,13,715 – on-road Bangalore.
Meanwhile, a draft notification from Ministry of Road Transport & Highways (MoRT&H) proposes an increase of Registration Charges of new vehicles by 10 to 20 times. Check out the proposed charges vs current rates in the table below:
|Vehicle Class||Proposed Registration Fee||Current Registration Fee|
|Two-wheelers||INR 1,000||INR 50|
|Cars||INR 5,000||INR 600|
|Trucks/buses||INR 20,000||INR 1,500|
|Medium good/passenger vehicles||INR 20,000||INR 1,000|
Society of Indian Automobile Manufacturers (SIAM) has expressed serious concerns on the draft notification.