The recent slashing of GST on electric vehicles from 12 to five percent, the lowest GST slab, is having its impact. EV manufacturers have begun to announce the reduced prices. Ather Energy, the Bangalore-based electric scooter maker, has cut prices of its scooters – the 340 and 450.

The Ather 450 now costs Rs 9,000 less at Rs 113,000 in Bangalore and Rs 122,000 in Chennai. The 340, meanwhile, now costs Rs 102,000 in Bangalore and Rs 110,000 in Chennai. Essentially, on-road prices have reduced by about Rs 8,000-9,000.

Ather recently began operations in Chennai with deliveries set to begin from September. The company had earlier revealed an ambitious sales target of 100,000 units by June 2021 and is working on expanding to multiple cities over the next couple of years.

The Ather 450 recently received FAME II-certification that reduced its cost by Rs 5,000. The reduced GST rate now makes it, and the 340, considerably more affordable, and much closer to popular premium 125cc scooters like the TVS NTorq and the April SR125. On the other hand, the Ather 450’s electric rival – the Okinawa i-Praise – currently costs Rs 114,000 (ex-showroom, Delhi), but it should also see a price cut as a reuslt of the reduced GST.