Following the slashing of GST on electric vehicles from 12 percent to 5 percent, EV makers have announced price cuts on their previous sticker tags. After Ather Energy and Ampere Vehicles, Okinawa Autotech is the latest to do that.
Okinawa Autotech has announced that prices of its electric scooter range now stand reduced by Rs 2,500-Rs 4,700 (lead acid batteries) and by Rs 3,400-Rs 8,600 (with lithium-ion batteries).
Jeetender Sharma, founder and MD, 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 percent GST reduction has reduced the upfront cost of buying Okinawa scooter by Rs 2,500–Rs 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.”
“This latest concession for sustainable mobility has reduced the price gap between EVs and IC-engine vehicles. Rising affordability will foster faster adoption of EVs. The GST rate cut has reduced the ex-showroom prices of electric two-wheelers in India and is expected to increase demand for cleaner vehicles. We are confident that it would encourage more and more people to look at EV as a viable option,” added Sharma.
The Centre’s GST rate cut follows a slew of incentives announced in the latest Budget to accelerate the adoption of EVs in India. The Union Budget introduced an additional income tax deduction of Rs 150,000 on the interest paid on a loan taken to purchase an electric vehicle. This amounts to a benefit of around Rs 250,000 over the loan period to taxpayers who buy an EV.