The Indian electric vehicle (EV) sector may face a significant policy shift as the Group of Ministers (GoM) has submitted a draft proposal to the GST Council, recommending differential tax treatment for electric vehicles based on their price point.

Key Points of the Proposal

• Luxury EVs: The GoM suggests increasing the Goods and Services Tax (GST) to 18% for electric four-wheelers priced above Rs 20 lakh.
• Affordable EVs: The proposal aims to maintain the current concessional rate for more affordable electric vehicles and electric buses.
• Rationale: The panel argues that a uniform 5% GST disproportionately benefits high-end EV buyers and leads to revenue loss.

Centre's Stance

The Central Government has taken a contrasting position on the matter:

• Opposition to Changes: The Centre opposes any alterations to the current tax structure for EVs.
• Uniform Rate Preference: It favors retaining the 5% concessional rate across all EV categories.
• Objective: The government's stance aims to accelerate electric mobility adoption in the country.

Upcoming Deliberations

The GST Council is set to discuss this proposal during its upcoming meeting:

• Meeting Date: September 3-4
• Context: The deliberations will be part of broader rate rationalization efforts.

Implications for the EV Market

If implemented, this tax revision could have significant implications for the electric vehicle market in India:

1. Price Segmentation: A clear demarcation between luxury and affordable EVs based on the Rs 20 lakh threshold.
2. Consumer Behavior: Potential impact on purchasing decisions, especially for vehicles priced near the proposed tax bracket change.
3. Industry Response: Possible adjustments in pricing strategies by EV manufacturers to align with the new tax structure.

The outcome of the GST Council's deliberations will be crucial for stakeholders across the EV ecosystem, from manufacturers and dealers to consumers. As the electric vehicle sector in India continues to evolve, policy decisions like these will play a pivotal role in shaping its growth trajectory and accessibility to different consumer segments.

In a significant push towards sustainable urban transportation, Delhi is set to dramatically expand its electric bus fleet and introduce a comprehensive new electric vehicle (EV) policy. These ambitious plans, announced by Delhi Transport Minister Pankaj Singh, aim to position the national capital as a leader in eco-friendly public transport and EV infrastructure.

Electric Bus Fleet Expansion

Delhi's roads are poised for a green makeover with the Transport Minister's announcement of a massive increase in the city's electric bus fleet. The plan includes:

• Expanding the current fleet of 3,400 electric buses to 7,000-8,000 by February 2026
• An interim target of 6,000 electric buses by the end of this year
• Introduction of Devi buses for last-mile connectivity

This substantial growth in electric public transport is expected to significantly reduce the city's carbon footprint and improve air quality.

EV Policy 2.0: Charging Ahead

To support the growing number of electric vehicles, Delhi is preparing to unveil its new EV Policy 2.0 by February. The policy focuses on:

• Developing charging infrastructure in strategic locations:
  • Housing societies
  • Under flyovers
  • Vacant land in outer Delhi
• Collaboration with Resident Welfare Associations
• Implementation of Public-Private Partnership models

The comprehensive policy will also address key aspects such as:

• Vehicle scrapping initiatives
• Road tax considerations
• Incentives for EV adoption

International Collaboration: Learning from Oslo

In a bid to leverage global expertise, Delhi plans to collaborate with Oslo, Norway, under the proposed 'Delhi-Oslo Smart Transport Initiative'. This partnership aims to:

• Learn from Norway's extensive experience in developing charging networks
• Adapt successful strategies to Delhi's unique urban landscape

Looking Ahead

The ambitious plans outlined by Minister Singh demonstrate Delhi's commitment to sustainable urban development and combating air pollution. As the city moves forward with these initiatives, residents can expect to see a greener, cleaner, and more efficient public transportation system in the coming years.

The success of these plans could potentially set a benchmark for other Indian cities, paving the way for a nationwide shift towards electric mobility and sustainable urban transport solutions.